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:

Dependent Variable

The variable in a study or experiment that is observed for changes in response to alterations in the independent variable.

Independent Variable

A variable in an experiment or study that is manipulated to determine its effect on a dependent variable.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations to the independent variable(s).

Verbal Punishment

A method of discipline that involves reprimanding or scolding an individual through words.