Suppose a Consumer Can Purchase Only Two Goods,beef and Chicken

question 5

Multiple Choice

Suppose a consumer can purchase only two goods,beef and chicken.If the price of beef falls (with all other variables held constant) ,and the consumption of chicken increases,we can conclude that the increased consumption of chicken is due to

• A)a change in the consumer's preference toward chicken.
• B)neither the income effect nor the substitution effect.
• C)the substitution effect only.
• D)both the income effect and the substitution effect.
• E)the income effect only.

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Definitions:

Structural Change

A significant alteration or transformation in the economy or a sector of the economy, typically involving shifts in industries, technology, or market dynamics.

Structural Change

Transformations or modifications in the physical or organizational architecture of a system, society, economy, or entity.

Reframing

Changing the perspective on a situation to see it in a new, often more positive or beneficial light, a technique often used in therapy and conflict resolution.

Cocaine Addiction

A chronic disorder characterized by the compulsive use of cocaine, leading to severe social, psychological, and health problems.