The Substitution Effect of a Price Change Leads Consumers to _

question 63

Multiple Choice

The substitution effect of a price change leads consumers to _ their demand for goods whose prices have risen.The income effect leads consumers to buy less of all goods whose prices have risen.

• A)reduce; normal
• B)reduce; Giffen
• C)increase; normal
• D)increase; inferior
• E)reduce; complement

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Definitions:

Syllogism

A form of deductive reasoning that consists of two premises followed by a conclusion, based on the relationship between the terms within the premises.

Shading

A technique used in drawing and painting to represent light and shadow, or the gradual change of value.

Universal Propositions

Statements that assert something about every member of a particular class.

Existential Import

The implication that something exists when affirmative statements are made about a category or class.