If the Price of an Apple Increases from 50¢ to 60¢

question 539

Multiple Choice

If the price of an apple increases from 50¢ to 60¢, the quantity demanded will decrease because of

• A) the substitution and income effects.
• B) a change in income.
• C) the substitution effect only.
• D) the income effect only.

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Definitions:

Process

A series of actions, changes, or functions that are intended to achieve a particular result.

Positive Emotions

Feelings that are considered pleasant or desirable, such as happiness, joy, or love.

Job Satisfaction

The degree of satisfaction workers experience regarding their job, influencing their output and general health.

Discrepancy Theory

A theory suggesting that dissatisfaction arises from a gap between an individual's desired and actual states.