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:

Interpretation

The act of determining the meaning or significance of legal texts, statutes, or regulations, often involving analysis by a court or legal authority.

Reverse

To overturn the judgment of a lower court.

Analyzing Cases

This involves the examination of legal cases to understand their implications, including dissecting the arguments, judgments and rationales used by the courts.

Majority Opinion

The judicial opinion agreed to by more than half of the members of a court, setting out the decision of the court.