Which of the Following Statements Is FALSE Regarding Consumer Choice

question 410

Multiple Choice

Which of the following statements is FALSE regarding consumer choice?

• A) Each change in price has a substitution effect and a real income effect.
• B) When price falls, the consumer chooses in favor of the cheaper good.
• C) Diminishing marginal utility is one reason for a downward sloping demand curve.
• D) Purchasing power has an inverse relationship with the rise in income.

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Definitions:

Early Behaviorists

Psychologists in the early 20th century who believed that psychological research should focus on measurable behaviors rather than internal processes.

Wilhelm Wundt

A German physiologist and psychologist, recognized as one of the founders of modern psychology, and known for establishing the first psychology laboratory.

Psychology Textbook

An academic book specifically designed to provide comprehensive information on various topics within the field of psychology, including theories, research findings, and applications.

Wilhelm Wundt

Commonly recognized as the father of experimental psychology, he founded the first formal laboratory for psychological research in Leipzig, Germany, in 1879.