Given a Fixed Demand Curve, Which of the Following Is

question 78

Multiple Choice

Given a fixed demand curve, which of the following is affected when the price changes?

• A) income
• B) tastes
• C) expectations
• D) quantity demanded

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Definitions:

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less costly alternatives, holding utility constant.

Price

The amount of money required to purchase a good or service, typically determined by supply and demand dynamics in the market.

Claret

A term predominantly used in Britain to refer to red wines from the Bordeaux region of France.

Demand Function

A mathematical representation that describes the relationship between the quantity of a good that consumers are willing and able to purchase and its price.