Which Effect of a Price Change Moves the Consumer Along

question 220

Multiple Choice

Which effect of a price change moves the consumer along the same indifference curve to a point with a new marginal rate of substitution?

• A)Budget effect
• B)Preference effect
• C)Substitution effect
• D)Income effect

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Definitions:

Melted

Refers to a solid substance that has been turned into a liquid by heating.

Friction

The resistance that one surface or object encounters when moving over another, often generating heat.

Immobilize

To restrict the movement of a part of the body or an object, often to prevent further injury or to allow healing.

Action

The process of doing something, typically to achieve an aim or to deal with a problem.