A 10 Percent Increase in the Price of Butter Reduces

question 118

Multiple Choice

A 10 percent increase in the price of butter reduces butter consumption by about 5 percent. The increase causes households to

• A) spend more on butter.
• B) spend less on butter.
• C) spend the same amount on butter.
• D) consume more goods like bread that are complements of butter.

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Definitions:

Andrew Johnson

The 17th President of the United States, who served from 1865 to 1869, succeeding Abraham Lincoln and facing significant challenges during the Reconstruction era.

Impeachment

Bringing charges against a public official; for example, the House of Representatives can impeach a president for “treason, bribery, or other high crimes and misdemeanors” by majority vote, and after the trial the Senate can remove the president by a vote of two-thirds. Two presidents, Andrew Johnson and Bill Clinton, have been impeached and tried before the Senate; neither was convicted.

Reconstruction Policy

The set of strategies implemented by the U.S. government from 1865 to 1877 aimed at rebuilding and reintegrating the Southern states after the Civil War and addressing the status of the freed slaves.

Equal Protection

A principle under the Fourteenth Amendment of the U.S. Constitution guaranteeing that no state will deny any person within its jurisdiction the equal protection of the laws.