Consider a Consumer Who Purchases Two Goods, X and Y

question 130

Multiple Choice

Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the substitution effect by itself will

• A) cause the consumer to buy more of good Y and less of good X.
• B) cause the consumer to buy more of good X and less of good Y.
• C) not affect the amount of goods X and Y that the consumer buys.
• D) result in an upward-sloping demand for good Y because of the substitution effect.

---

Definitions:

Values

Ideas about what is right and wrong.

Emotional Life

The range of emotions an individual experiences, including how those emotions are expressed, managed, and understood within a cultural context.

Workers

Individuals engaged in physical or mental labor, either for an employer or freelancing, contributing to the production of goods or services.

Governed

The term 'governed' refers to individuals, groups, or areas that are subject to the control and administration of governing bodies or authorities.