The Substitution Effect of an Increase in the Price of Raisin

question 81

Multiple Choice

The substitution effect of an increase in the price of Raisin Bran refers to

• A)the decrease in the demand for Raisin Bran when its price rises.
• B)the result that consumers will now switch to a substitute good such as Cheerios, and the demand curve for Raisin Bran shifts to the left.
• C)the fact that the higher price of Raisin Bran lowers consumers' purchasing power, holding money income constant.
• D)the fact that the higher price of Raisin Bran relative to its substitutes, such as Cheerios, causes consumers to buy less Raisin Bran.

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Definitions:

Integrator Role

A function in organizations and teams where the individual is responsible for bringing together different elements, information, and resources for cohesive operation and strategy.

Liaison Role

A role that involves facilitating coordination and communication between different parts of an organization or between organizations.

Differentiated Organization

An organization that is structured into distinct units specialized in particular business functions or operations.

Integration

The process of combining elements from different systems, organizations, or cultures into a coherent whole.