Figure 21-23 -Refer to Figure 21-23. When the Price of X Is

question 539

Multiple Choice

Figure 21-23
-Refer to Figure 21-23. When the price of X is $80, the price of Y is $20, and the consumer's income is $160, the consumer's optimal choice is D. Then the price of X decreases to $20. The substitution effect can be illustrated as the movement from

• A)D to E.
• B)D to C.
• C)C to E.
• D)E to D.

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Definitions:

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, covering the period from birth to about 2 years of age, where infants learn through interacting with their environment.

Piaget

A Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development which outlines how children progress through various stages of intellectual growth.

Concrete Operational

A stage in Piaget’s theory of cognitive development where children aged 7 to 12 develop logical thinking skills but are still concrete in their approach to problem-solving.

Formal Operational

A stage in Piaget's theory of cognitive development, where individuals are able to think abstractly, logically, and systematically.