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:

Different Tastes

Varied preferences and likes that people have, especially in the context of food, art, culture, etc.

Sleeping Patterns

The habitual timing, duration, and quality of sleep, which can influence overall health and well-being.

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The three phases during labor and delivery, starting from contractions, through delivery of the baby, to the delivery of the placenta.

Preterm Babies

Infants born before completing the usual 37 weeks of gestation, often requiring special medical care due to their undeveloped bodies and organs.