The Substitution Effect Is

question 80

Multiple Choice

The substitution effect is

• A) the change in quantity demanded that occurs when one good is substituted for another.
• B) the change in the relative prices of two or more goods.
• C) the change in quantity demanded that occurs as a result of a change in absolute prices, with real income held constant.
• D) the change in quantity demanded that occurs as a result of a change in relative prices with real income held constant.
• E) the change in quantity demanded that occurs as a result of a change in relative prices with money income held constant.