The Reason the Substitution Effect Works to Encourage a Consumer

question 228

Multiple Choice

The reason the substitution effect works to encourage a consumer to buy less of a product when its price increases is that

• A)the real income of the consumer has been increased.
• B)the real income of the consumer has been decreased.
• C)the product is now relatively more expensive than it was before.
• D)other products are now relatively more expensive than they were before.

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Definitions:

Waterproof Membranes

Materials or structures that prevent water from passing through them, used to protect buildings, devices, and other objects from moisture.

Bony Appendages

Hard, structural components of vertebrates, such as limbs or fins, that are made of bone.

Land-Based Life

Land-based life refers to organisms that live primarily or exclusively on land, as opposed to aquatic or marine environments.

Hominin Hairiness

Refers to the coverage and distribution of body hair in human ancestors and close relatives, impacting various aspects like thermal regulation and social signaling.