As the Relative Price of a Good Falls, the Substitution

question 50

Multiple Choice

As the relative price of a good falls, the substitution effect implies that people buy

• A) more of that good and more of its substitutes.
• B) less of that good and more of its substitutes.
• C) more of that good and less of its substitutes.
• D) less of that good and less of its substitutes.

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Definitions:

Lewinsky Scandal

A political scandal involving President Bill Clinton and Monica Lewinsky, leading to Clinton's impeachment trials in 1998.

American Public

The general population or society of the United States, including its citizens and residents.

Kenneth Starr

An American lawyer best known for his role as the independent counsel who led the investigation into President Bill Clinton that led to Clinton's impeachment in 1998.

Special Prosecutor

An attorney appointed to investigate, and potentially prosecute, government officials for misconduct.