Case 2-2 You and Ellen Are Cramming for Your Exam

question 93

Multiple Choice

Case 2-2 You and Ellen are cramming for your exam about the second phase of the program development life cycle, the design of the user interface. Ellen tells you the percentage of program design time that developers spend on the user interface. You think that she is exaggerating but then you double-check and see that she is right. What range does she give you?

• A) 25 percent to 40 percent
• B) 30 percent to 48 percent
• C) 35 percent to 60 percent
• D) 39 percent to 70 percent

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Definitions:

Substitution Effect

The economic understanding that as prices rise (or incomes decrease), consumers will replace more expensive items with less costly alternatives.

Inferior Good

A type of good for which demand decreases when the income of the consumer increases, inversely related to normal goods.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Substitution Effect

Refers to the change in consumption patterns due to a change in the relative prices of goods, holding the consumer's utility constant.