The Substitution Effect

question 15

Multiple Choice

The substitution effect

• A)is generally so weak that its effect cannot be predicted.
• B)for an increase in the relative price of a good is sometimes positive but sometimes negative.
• C)refers to the change in the quantity demanded of a good due to a change in its relative price.
• D)measures the change in the quantity of a good demanded brought about by a change in real income associated with a change in the price of the good.

---

Definitions:

Fetal Alcohol Effect

A condition resulting from alcohol exposure during pregnancy, characterized by developmental delays and problems in behavior or cognition, less severe than Fetal Alcohol Syndrome.

Amniotic Fluid

Fluid within the amniotic sac that suspends and protects the fetus.

Ectoderm

The outermost cell layer of the newly formed embryo from which the skin and nervous system develop.

Endoderm

The inner layer of the embryo from which the lungs and digestive system develop.