The Substitution Effect Is

question 80

Multiple Choice

The substitution effect is

• A) the change in quantity demanded that occurs when one good is substituted for another.
• B) the change in the relative prices of two or more goods.
• C) the change in quantity demanded that occurs as a result of a change in absolute prices, with real income held constant.
• D) the change in quantity demanded that occurs as a result of a change in relative prices with real income held constant.
• E) the change in quantity demanded that occurs as a result of a change in relative prices with money income held constant.

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Definitions:

Alpha (α)

Probability of a statistic used to make the decision whether to reject the null hypothesis.

Sampling Distribution

The chance distribution for a statistic identified from a random sample.

Z-scores

A standard score indicating how many standard deviations an element is from the mean.

Normal Curve

A bell-shaped curve that represents the distribution of a set of data where most occurrences take place around the mean, tapering off symmetrically towards the extremes.