The Substitution Effect of a Price Increase

question 146

Multiple Choice

The substitution effect of a price increase:

• A) causes the consumer to purchase less of the good that is now relatively more expensive.
• B) causes the consumer to purchase more of the good whose price has risen.
• C) can cause the consumer to purchase either more or less of the good.
• D) has no effect on the amount purchased of either good.

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Definitions:

Hominoid Fossil

A fossil belonging to the Hominidae family, which includes modern humans, their direct ancestors, and other close relatives.

Bipedalism

The ability to walk upright on two legs, a key trait in human evolution that distinguishes humans from most other primates.

Human Evolution

The lengthy process of change by which people originated from apelike ancestors, involving biological, physical, and genetic developments.

Incomplete Fossil Record

The partial preservation of organisms in the Earth's crust, which provides an incomplete view of the history of life.