The Substitution Effect Is the Effect of a Change in ________

question 42

Multiple Choice

The substitution effect is the effect of a change in ________ on ________.The income effect is the effect of a change in ________ on ________.

• A)income;quantity bought of a substitute;income;quantity bought
• B)income;consumption;price;quantity bought
• C)price;quantity bought;income;quantity bought
• D)the price of a substitute;quantity bought;income;the number of labour hours
• E)none of the above

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Definitions:

Sequentially Played Game

A type of game in game theory where players make their moves one after another, rather than simultaneously.

Battle of the Sexes

A concept in game theory where two players (often representing different genders) have different preferences over the outcome of a game.

Matching Pennies

A classic example of a zero-sum game where two players must secretly choose between a penny facing heads or tails, with outcomes depending on whether the choices match or not.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies while the other players keep theirs unchanged, indicating a state of mutual best responses.