When the Price of a Given Product Declines, Consumers' Spendable

question 168

Multiple Choice

When the price of a given product declines, consumers' spendable income rises because it takes less income to purchase the same quantity. This is called the _____ effect.

• A) net export
• B) income
• C) substitution
• D) interest

---

Definitions:

Louisiana Purchase

The 1803 acquisition by the United States of approximately 828,000 square miles of territory from France, doubling the size of the young nation.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all U.S. federal court cases and state court cases involving issues of federal law, plus original jurisdiction over a small range of cases.

John Marshall

The fourth Chief Justice of the United States, whose leadership at the Supreme Court established the principles of constitutional law and judicial review.

Judicial Power

The authority granted to courts and judges to interpret and apply the law, resolve disputes, and enforce legal decisions.