The Tendency of People to Substitute Cheaper Commodities for More

question 75

Multiple Choice

The tendency of people to substitute cheaper commodities for more expensive commodities is the

• A) law of diminishing marginal utility.
• B) real-income effect.
• C) substitution effect.
• D) price income effect.

---

Definitions:

Math Test

An examination designed to assess an individual’s understanding and proficiency in mathematical concepts and problem-solving.

Test Bias

The presence of certain factors in a test that systematically advantages or disadvantages certain groups of individuals, leading to unfair assessment outcomes.

Item Difficulty

A measure of the proportion of individuals who correctly answer or perform a specific task or test item, indicating the item's level of challenge.

Psychologists

Experts in psychology, the study of the mind and behavior, who may engage in research, teaching, or provide therapeutic services.