Consider a Consumer Who Purchases Two Goods, X and Y

question 130

Multiple Choice

Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the substitution effect by itself will

• A) cause the consumer to buy more of good Y and less of good X.
• B) cause the consumer to buy more of good X and less of good Y.
• C) not affect the amount of goods X and Y that the consumer buys.
• D) result in an upward-sloping demand for good Y because of the substitution effect.

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Definitions:

Pinna

The external part of the ear that collects sound waves and directs them into the ear canal.

Traction

The application of a pulling force to parts of the body to align and immobilize fractures or to relieve pressure on skeletal or soft tissues.

Aspirin

A medication used to reduce pain, fever, inflammation, and, in low doses, to prevent blood clots.

Startle

A quick, automatic response to a sudden unexpected stimulus, often characterized by jerking bodily motions.