The Substitution Effect Is Unambiguous in Its Direction

question 1

True/False

The substitution effect is unambiguous in its direction.

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Definitions:

Risk Aversion

The tendency to prefer certainty over uncertainty, typically by choosing safer or guaranteed outcomes over riskier ones in decision-making.

Small Business

Any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.