The Price of Cereal Rises

question 116

Multiple Choice

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behaviour is an example of

• A) a decrease in the quantity demanded of cereal because of the substitution effect.
• B) a decrease in the quantity supplied of cereal because of the substitution effect.
• C) an increase in the quantity demanded of eggs because of the income effect.
• D) an increase in the quantity supplied of eggs because of the income effect.

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Definitions:

Personal Narratives

The stories individuals tell about themselves and their experiences, shaping their identity and how they make sense of the world.

Scientific Evidence

Information, collected systematically through observation and experimentation, that serves to support or refute a scientific theory or hypothesis.

Neo-Freudian

Psychologists who accepted the basic components of Freud's theory but modified and expanded upon it, emphasizing social and cultural factors over instinctual drives.

Freud's Original Theory

Refer to Sigmund Freud's foundational principles in psychoanalysis, which include the structure of the mind, psychosexual stages, and the role of unconscious thoughts.