Which of the Following Descriptions Best Depicts the Substitution Effect

question 112

Multiple Choice

Which of the following descriptions best depicts the substitution effect?

• A)the change in consumption resulting from a change in the consumer's income, holding the prices of the goods constant
• B)the change in consumption resulting from a change in the consumer's income, holding the consumer's level of satisfaction constant
• C)the change in consumption resulting from a change in the price of one good, holding the consumer's level of satisfaction constant
• D)the change in consumption resulting from a change in the price of one good, allowing the consumer's level of satisfaction to change

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