The Change in the Quantity of a Product Demanded by Consumers

question 37

Multiple Choice

The change in the quantity of a product demanded by consumers because of a change in their earnings is called the:

• A)substitution effect.
• B)price effect.
• C)supply effect.
• D)demand effect.
• E)income effect.

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Definitions:

Min Function

In mathematics, a function that identifies the smallest value in a set of numbers.

Income

Represents the money received, especially on a regular basis, for work or through investments.

Price of X

The amount of money required to purchase a specified amount of good or service 'X'.

Price of Y

The cost or value attributed to a good or service denoted by 'Y', often set by market demand and supply or by the seller.