The Substitution Effect Is

question 29

Multiple Choice

The substitution effect is:

• A)the change in the amount of the good consumed holding the level of income constant.
• B)the change in the amount of the good consumed as the price of the good changes holding income constant.
• C)the change in the amount of the good consumed as the price of the good changes holding utility constant.
• D)the change in the amount of the good consumed holding relative prices constant and changing the level of income.

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Definitions:

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