There Are Many Options Available to Consumers When It Comes

question 39

Multiple Choice

There are many options available to consumers when it comes to toothpaste. So, if Procter & Gamble significantly increases the price of Crest toothpaste, consumers are more apt to buy alternate toothpaste instead. This illustrates which concept?

• A)the income effect
• B)the substitution effect
• C)the break-even point
• D)the target return effect
• E)cross-price elasticity

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Definitions:

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A situation in which everyone who wants to work can find employment at prevailing wage rates.

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Production Possibilities Curve

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