When a Price Changes There Are Two Effects: The

question 16

Multiple Choice

When a price changes there are two effects: the:

• A) real-income effect and the consumer optimum effect.
• B) substitution effect and the marginal utility effect.
• C) real-income effect and the substitution effect.
• D) marginal utility effect and the substitution effect.
• E) consumer optimum effect and the substitution effect.

---

Definitions:

Circadian Rhythms

The innate, physiological mechanisms that control the cycle of sleeping and waking, occurring approximately every 24 hours.

Neural Activity

The electrical and chemical processes that occur within neurons, enabling them to communicate with each other.

Moon Phase

The appearance of the illuminated portion of the moon as seen from Earth, which changes in a cyclical pattern.

Time Duration

The interval between the beginning and the end of an event, process, or activity.