When the Price of a Pizza Decreases from $12 to $10

question 164

Multiple Choice

When the price of a pizza decreases from $12 to $10, it is definitely the case that the

• A) substitution effect means people buy more pizza.
• B) quantity demanded of pizza will not change.
• C) income effect means people buy less pizza.
• D) None of the above answers is correct.

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Definitions:

Primary Reason

The main or most important cause or motive behind an action or situation.

Interaction

The process of two or more entities or individuals engaging with each other, exchanging information or affecting each other's actions.

Social Media

Online services and sites designed for users to produce, share content, and be involved in social networks.

Communication

The act of conveying meanings from one entity or group to another through the use of mutually understood signs, symbols, and semiotic rules.