You and Your Partner Are at a Party and Your

question 16

Essay

You and your partner are at a party and your partner says something that embarrasses you.Define and provide examples of two kinds of attributions that you might make about your partner's behavior: (1)stable/internal;and (2)temporary/internal.

---

Definitions:

Income Effect

The change in consumption that results from a change in real income (purchasing power), holding prices constant, reflecting how higher income increases consumption of goods while lower income reduces it.

Income Effect

The change in an individual's consumption choices resulting from a change in their real income.

Substitution Effect

The economic understanding that as prices rise (or incomes decrease), consumers will replace more expensive items with less costly alternatives.

Inferior Good

A type of good for which demand decreases when the income of the consumer increases, inversely related to normal goods.