Figure 21-20 -Refer to Figure 21-20.Suppose That a Consumer Is Originally at Consumer

question 195

Multiple Choice

Figure 21-20

-Refer to Figure 21-20.Suppose that a consumer is originally at point R.Then the price of good X decreases.Which of the following represents the substitution effect of the price decrease?

• A) the movement from point R to point S
• B) the movement from point R to point T
• C) the movement from point T to point S
• D) None of the above is correct.

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Definitions:

Shays's Rebellion

An armed uprising in Western Massachusetts in 1786-1787, led by Daniel Shays, highlighting the need for a stronger national government which led to the drafting of the U.S. Constitution.

Articles of Confederation

The first constitution of the United States, ratified in 1781, which was replaced by the US Constitution in 1789 due to its weaknesses in central authority.

Revolutionary War

The conflict (1775-1783) between the thirteen American colonies and Great Britain, leading to the independence of the United States.

Louisiana Purchase

The acquisition of the territory of Louisiana by the United States from France in 1803, doubling the size of the U.S. and opening the west for expansion.