Suppose Amy Normally Buys Sushi and Miso

question 142

Multiple Choice

Suppose Amy normally buys sushi and miso.There is an increase in the price of miso.If Amy stays on the same indifference curve there has been:

• A)an income effect that means she consumes more miso
• B)an income effect that means she consumes less miso
• C)a substitution effect that means she consumes more sushi
• D)a substitution effect that means she consumes less sushi

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Definitions:

Capital Balance

The total amount of capital contributed by investors or owners plus retained earnings or minus losses.

Income Distribution

The way total income is shared among individuals or groups within an economy or organization.

Net Income

A company's total earnings or profit; calculated as revenues minus expenses, taxes, and the cost of goods sold.

Personal Use

Utilization of property or goods in a manner primarily for the individual's own consumption, enjoyment, or benefit, rather than for business or commercial purposes.