When the Price of a Product Rises, Consumers with a Given

question 78

Multiple Choice

When the price of a product rises, consumers with a given money income shift their purchases to other products whose prices are now relatively lower. This statement describes

• A) an inferior good.
• B) the rationing function of prices.
• C) the substitution effect.
• D) the income effect.

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Definitions:

Cognitive Appraise

Cognitive Appraise is a process of evaluating and processing information and experiences in relation to one's own emotional and psychological state.

Primacy Of Thinking

The principle that thought processes precede and are fundamental to emotions, behaviors, and attitudes.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy and slowing down the heart rate, among other functions.

Dopamine

A neurotransmitter associated with pleasure, movement, and attention, playing a significant role in the brain's reward system.