According to the Substitution Effect, What Impact Will an Increase

question 37

Multiple Choice

According to the substitution effect, what impact will an increase in the price of oranges have on consumers?

• A) It will leave consumers with less money to spend on all goods.
• B) It will cause consumers to consume fewer apples because more money is spent on oranges.
• C) It will cause consumers to replace some oranges with other fruit that is now relatively cheaper than oranges.
• D) It will cause consumers to spend more on oranges because a higher price signals that oranges are better than apples.

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Definitions:

Intermediate scrutiny

A standard of judicial review that applies to classifications based on gender or legitimacy, requiring the law to serve an important government objective in a way that is substantially related to that objective.

Hostile work environment

A situation in which an employee experiences an offensive, intimidating, or oppressive atmosphere created by discriminatory harassment, affecting their ability to work.

Sexual harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature.

Prima facie case

An established case proven by the facts until contradicted and overcome by other evidence.