Which Effect of a Price Change Moves the Consumer Along

question 34

Multiple Choice

Which effect of a price change moves the consumer along the same indifference curve to a point with a new marginal rate of substitution?

• A)the budget effect
• B)the preference effect
• C)the substitution effect
• D)the income effect

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Definitions:

Purchasing

The act of acquiring goods or services, often for business purposes, to fulfill the needs of an organization or individual.

Procurement

The process of obtaining goods, services, or works from an external source, often via a tendering or competitive bidding process.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Organizational Success

The achievement of the set goals and objectives of an organization, often measured by financial performance, market share, and other key indicators.