The Substitution Effect from a Rise in the Price of Pizza

question 394

Multiple Choice

The substitution effect from a rise in the price of pizza

• A) leads to a movement along the fixed budget line, due to a change in relative prices.
• B) increases the quantity demanded of pizza.
• C) decreases the quantity demanded of pizza.
• D) Both answers A and B are correct.

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Definitions:

Continuous Reinforcement

A method of learning that involves providing a reward or positive outcome every time a desired behavior is performed.

Categorical Thinking

involves organizing or classifying information and experiences into categories to simplify and speed up the decision-making process.

Long-Term Memory

A type of memory responsible for the storage of information over an extended period, from days to decades.

Learning Orientation

An individual's predisposition towards viewing situations as opportunities for gaining new knowledge and skills, rather than as tasks to be completed.