The Substitution Effect Means Consumers Substitute Good a for Good

question 68

Multiple Choice

The substitution effect means consumers substitute good A for Good B if Good A is

• A)relatively more expensive.
• B)of higher quality.
• C)more closely aligned with the natural level of real output.
• D)relatively cheaper.

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Definitions:

Central Nervous System Depressants

Substances that slow down the activity of the central nervous system, often prescribed to treat anxiety, tension, and sleep disorders.

Kava

A plant native to the Pacific Islands that's used to produce a drink with sedative, anesthetic, and euphoriant properties, traditionally consumed for its relaxing effects.

Cirrhosis

A chronic liver disease marked by scarring of liver tissue which can lead to liver failure.

Warfarin

A medication commonly used as an anticoagulant to prevent blood clots from forming or growing larger in the blood and blood vessels.