If the Price of a Good Falls, the Substitution Effect

question 36

True/False

If the price of a good falls, the substitution effect will always induce the consumer to consume at least as much of the good as before the price change.

---

Definitions:

Resilience

The capacity to recover quickly from difficulties; toughness.

Acceptance

Acceptance refers to the act of receiving or taking something offered or recognizing a situation or condition as valid or correct without attempting to change it, often implying agreement or consent.

Manipulation

The act of controlling or influencing a person or situation cunningly or unfairly.

Endorphins

Neurotransmitters produced in the brain that act as natural painkillers and are also associated with feelings of pleasure and euphoria.