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

question 70

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) the substitution effect only.
• C) the income effect only.
• D) neither the income effect nor the substitution effect.
• E) both the income effect and the substitution effect.

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Definitions:

Aromatic Compound

An organic molecule characterized by its stable ring of electrons, which creates delocalized pi-electron clouds throughout the structure, contributing to its chemical stability.

Carbon Atoms

The basic building blocks of all organic compounds, consisting of six protons and six neutrons.

Structure

The arrangement of atoms within a molecule which defines the molecule's properties and reactions.

Water Soluble

The ability of a substance to dissolve in water, forming a homogenous mixture.