When the Price of a Pizza Decreases from $12 to $10

question 489

Multiple Choice

When the price of a pizza decreases from $12 to $10, it is definitely the case that the

• A) income effect means people buy less pizza.
• B) substitution effect means people buy more pizza.
• C) quantity demanded of pizza will not change.
• D) None of the above answers is correct.

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Definitions:

Parathyroid Hormone

A hormone secreted by the parathyroid glands that regulates calcium levels in a person's body.

Blood Calcium Levels

The concentration of calcium in the blood, crucial for various physiological processes including bone formation and muscle contraction.

Amino Acid Derivatives

Simplest hormones, such as epinephrine and melatonin, that are derived from amino acids.

Fatty Acid Derivatives

Prostaglandins, juvenile hormones of insects, and other compounds derived from fatty acids.