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:

Draws Arms

Refers to the action of pulling one's arms towards the body or towards another object or person.

Months

Periods of time in the calendar year, each typically lasting about 30 to 31 days.

Vocalizes

The act of producing sound or speech, often used in the context of how organisms, including humans, express themselves audibly.

Cools, Babbles

An expression indicating the early stages of an infant's vocal development characterized by making cooling and babbling sounds.