If You Drop Your Textbook, It Falls Because the Earth

question 11

Multiple Choice

If you drop your textbook, it falls because the earth pulls it downward. At the same time, your textbook pulls on the earth with a force that is

• A) equal to the downward pull on the textbook and in the same direction.
• B) equal to the downward pull on the textbook but in the opposite direction.
• C) immeasurably small.
• D) zero.

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Definitions:

Substitution Effects

The change in the consumption pattern of goods due to a change in their relative price, leading consumers to substitute one good for another.

Labor Market

The input/factor market in which households supply work for wages to firms that demand labor.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute cheaper goods for more expensive ones.

Wage Decrease

A reduction in the pay rate of a worker or a group of workers.