When a Consumer Buys More of a Good as a Result

question 62

Multiple Choice

When a consumer buys more of a good as a result of a relative price change,economists call it

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

Understand the difference between a change in quantity supplied and a change in supply.

Recognize factors that cause shifts in supply curves.

Identify the impact of technological changes on supply.

Differentiate between movements along the supply curve and shifts of the supply curve.

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Definitions:

Cognitive Conflict

A situation arising from the encounter of differing viewpoints or information, leading to a reevaluation of existing beliefs or knowledge.

Equilibration

The process in cognitive development described by Piaget where children balance assimilation and accommodation to create stable understanding.

Disequilibrium

Disequilibrium refers to a state of imbalance or lack of equilibrium, often used in contexts ranging from physical stability to economic conditions.

Accommodation

In cognitive development, the process of altering one's existing schemas or ways of thinking in response to new information.