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.

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Definitions:

Basal Ganglia

A group of structures in the brain involved in processing information on movement and coordination, as well as aspects of learning and emotional response.

Iconic Memory

A type of visual sensory memory that temporarily stores an image that has been perceived visually.

Echoic Memory

A component of sensory memory that retains audio information, allowing sounds to be remembered for short periods after the original sound is produced.

Sensory Memory

The shortest-term element of memory, acting as a buffer for stimuli received through the senses, and is capable of holding a vast amount of information, but only for a very short period.