The Effect of a Change in Price on the Quantity

question 92

Multiple Choice

The effect of a change in price on the quantity bought when the consumer remains indifferent between the original and the new situation is called the

• A) indifference effect.
• B) substitution effect.
• C) income effect.
• D) demand effect.

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Definitions:

Specific Threshold

A determined point or value at which an action is triggered or a change occurs, often used in contexts such as operations, finance, and technology.

Relevant Information

Information that is applicable and helpful in making a decision, typically due to its timeliness, accuracy, and context.

Salaried Manager

An employee who receives a fixed compensation for their work over a period, typically annually or monthly, regardless of hours worked.

Incentivize

To provide motivation or encouragement to someone by offering rewards or incentives.