Use the Following to Answer Questions

question 86

Multiple Choice

Use the following to answer questions:
Figure: Income and Substitution Effects
-(Figure: Income and Substitution Effects) Refer to the figure. The consumer is initially in equilibrium at Point A then moves to Point B. What is the substitution effect from the price change?

• A) the reduction of the number of music downloads by three
• B) the reduction of the number of music downloads by four
• C) the increase of the number of music downloads by one
• D) the increase of the number of music downloads by three

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Definitions:

Lower-Class Men

Individuals from the bottom socio-economic tier of society, often characterized by lower income and limited access to resources.

Headright System

A land-grant policy that promised fifty acres to any colonist who could afford passage to Virginia, as well as fifty more for any accompanying servants. The headright policy was eventually expanded to include any colonists—and was also adopted in other colonies.

Large Estates

Expansive areas of land, usually encompassing significant homes or mansions, often associated with wealth and aristocracy.

Indentured Servants

Individuals who were bound by contract to serve another person for a specified period of time in exchange for passage to America, training, or other benefits, common in the 17th and 18th centuries.