Consider a Consumer Who Purchases Two Goods, X and Y

question 130

Multiple Choice

Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the substitution effect by itself will

• A) cause the consumer to buy more of good Y and less of good X.
• B) cause the consumer to buy more of good X and less of good Y.
• C) not affect the amount of goods X and Y that the consumer buys.
• D) result in an upward-sloping demand for good Y because of the substitution effect.

---

Definitions:

Opinion

A belief or judgment formed about something, not necessarily based on fact or knowledge.

Factual Information

Accurate data or details based on real events, facts, or evidence.

Value Ladder

A marketing concept that maps out a progression of products or services that increase in price and value, guiding customers through different levels of engagement.

Pillar

A fundamental component or structure that supports and adds strength or stability to a system, organization, or theory.