Which of the Following Descriptions Best Depicts the Substitution Effect

question 112

Multiple Choice

Which of the following descriptions best depicts the substitution effect?

• A)the change in consumption resulting from a change in the consumer's income, holding the prices of the goods constant
• B)the change in consumption resulting from a change in the consumer's income, holding the consumer's level of satisfaction constant
• C)the change in consumption resulting from a change in the price of one good, holding the consumer's level of satisfaction constant
• D)the change in consumption resulting from a change in the price of one good, allowing the consumer's level of satisfaction to change

---

Definitions:

Extra Shifts

Additional work periods taken on by an employee beyond their normal working hours, often to meet increased demand or to earn more income.

Culture-Of-Poverty Explanation

A theory suggesting that poverty creates certain cultural attitudes, behaviors, and values which perpetuate the condition of being poor across generations.

Indoctrination Explanation

Describes a theory or reasoning that attempts to explain the process of teaching a person or group to accept a set of beliefs uncritically.

Significant Problem

An issue or challenge of considerable importance or magnitude that demands attention and resolution.