Which of the Following Best Describes the Substitution Effect Caused

question 13

Multiple Choice

Which of the following best describes the substitution effect caused by a price increase?

• A) A change in consumption due to the fact that you will not buy goods whose marginal value is below the new price.
• B) A change in consumption due to the fact that you cannot afford your original market basket.
• C) A smaller percentage change in quantity than in price.
• D) A larger percentage change in quantity than in price.

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Definitions:

Radiation

The emission of energy as electromagnetic waves or as moving subatomic particles, especially high-energy particles that cause ionization.

Prenatal Period

The stage of human development that occurs from conception until birth.

Growth

The process of increasing in physical size, intellectual capacity, maturity, or the expansive development of an organism or entity over time.

Fetal

Pertaining to the developing human within the womb, especially beyond the eighth week after conception.