The Change in a Consumer's Consumption of a Good in Response

question 163

Multiple Choice

The change in a consumer's consumption of a good in response to an income-compensated price change is called the:

• A) substitution effect.
• B) budget effect.
• C) demand effect.
• D) income effect.

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Definitions:

Meteorological Phenomenon

An observable event that is explained by the science of meteorology, such as storms, tornadoes, and rainfall.

Spectrum

A range of different positions, opinions, or conditions, often seen as a continuous series.

Rainbow

An optical and meteorological phenomenon that causes a spectrum of light to appear in the sky when sunlight is dispersed through water droplets in the atmosphere.

Genus

In taxonomy, a rank used in the biological classification of organisms that groups together species exhibiting common characteristics.