The Substitution Effect Says That as the Price of a Good

question 227

Multiple Choice

The substitution effect says that as the price of a good

• A) rises, consumers substitute cheaper products for the good.
• B) falls, consumers buy substitute goods.
• C) rises, the purchasing power of income falls.
• D) falls, consumers reduce the quantity demanded of that good.

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Definitions:

Mean

The average of a set of numbers, calculated by adding them together and dividing by the count of numbers.

Scores

Values or data points obtained from assessments, tests, or measurements, representing the performance or achievement of an individual or group.

Standard Deviations

A measurement of the amount of variation or dispersion of a set of values, indicating how much the individual values differ from the mean.

Mean

The arithmetic average of a set of values, calculated by dividing the sum of all values by the number of values.