When the Price of an Inferior Good Falls, the Substitution

question 138

Multiple Choice

When the price of an inferior good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased.

• A) an increase; an increase
• B) an increase; a decrease
• C) a decrease; an increase
• D) a decrease; a decrease

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Definitions:

Ethology

The study of animal behavior under natural conditions from the point of view of adaptation.

Imprinting

A form of learning which occurs at a specific life stage and involves recognizing and following the characteristics of another individual, often the parent.

Innate Behavior

Behavior that is inherited and typical of the species; also called instinct.

Classical Conditioning

A type of learning in which an association is formed between some normal response to a stimulus and a new stimulus, after which the new stimulus elicits the response.