The Price of Cereal Rises

question 283

Multiple Choice

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of

• A) a decrease in the quantity demanded of cereal because of the substitution effect.
• B) an increase in the quantity demanded of eggs because of the income effect.
• C) a decrease in the quantity supplied of cereal because of the substitution effect.
• D) an increase in the quantity supplied of eggs because of the income effect.

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Definitions:

Emotional Interference

The impact of one's emotions on their cognitive processes, potentially hindering decision-making or problem-solving abilities.

Selective Perception

The process by which individuals perceive what they want in media messages while ignoring opposing viewpoints.

Selective Memory

A cognitive process where a person remembers some information while forgetting other info, often influenced by emotional factors.

Boredom

A state of feeling disinterested and unengaged, often resulting from a lack of stimulation or activity.