When the Price of a Good Rises,the Resulting Change in Relative

question 61

Multiple Choice

When the price of a good rises,the resulting change in relative price causes the consumer to reduce his quantity demanded of that good,even when the consumer is income-compensated so that he remains indifferent about the price change.This observation is known as the

• A) Giffen good phenomenon.
• B) law of demand.
• C) substitution effect.
• D) income effect.

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Definitions:

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The process of developing attachments and connections between individuals, which can foster a sense of belonging and mutual support within groups or communities.

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