Pepsi and Pizza Are Normal Goods

question 567

Multiple Choice

Pepsi and pizza are normal goods. When the price of pizza falls, the substitution effect by itself will cause a

• A)shift to a lower indifference curve so that the consumer buys less Pepsi.
• B)shift to a higher indifference curve so that the consumer buys more Pepsi.
• C)movement along the indifference curve so that the consumer buys more Pepsi.
• D)movement along the indifference curve so that the consumer buys less Pepsi.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involving several areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Cerebellum

The part of the brain located at the back of the skull, beneath the occipital lobes, involved in regulating motor movements, maintaining posture and balance, and possibly cognitive functions.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Cerebrum

The largest structure of the human brain, consisting of the two cerebral hemispheres connected by the corpus callosum and covered by the cerebral cortex.