Which of the Following Represents the Substitution Effect of an Increase

question 145

Multiple Choice

Which of the following represents the substitution effect of an increase in the price of apples?

• A)A decrease in the consumer's real income
• B)A decrease in the quantity of apples purchased
• C)A decrease in the quantities of all goods purchased by the consumer
• D)A shift of consumption from other goods to apples
• E)A decrease in the opportunity cost of consuming apples

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Definitions:

Offshoring Backlash

Negative public and political reaction against companies moving production or services to another country to reduce costs, often leading to job losses in the home country.

Technological Factor

An aspect of the external environment that represents how advances in technology can impact business operations and market competitiveness.

PEST Analysis

A framework used to analyze and monitor the macro-environmental factors that may have a profound impact on an organization's performance. This includes Political, Economic, Social, and Technological factors.

Advancement Of Infrastructure

The improvement or upgrading of the foundational physical and organizational structures needed for the operation of a society or enterprise.