If the Price of Lattes, a Normal Good You Enjoy

question 114

Multiple Choice

If the price of lattes, a normal good you enjoy, falls, then

• A)the income and substitution effects offset each other but the price effect leads you to buy more lattes.
• B)both the income and substitution effects lead you to buy more lattes.
• C)the income effect which causes you to increase your latte consumption outweighs the substitution effect which causes you to reduce your latte consumption, resulting in more lattes purchased.
• D)the substitution effect which causes you to increase your latte consumption outweighs the income effect which causes you to reduce your latte consumption, resulting in more lattes purchased.

---

Definitions:

Interneuron

A type of neuron that communicates only with other neurons, typically found within the central nervous system and plays a role in reflexes and neuronal circuits.

Arachnoid mater

A delicate membrane that is one of the three layers (meninges) surrounding the brain and spinal cord, providing protection.

Meninges

Membranes that protect the brain and spinal cord.

Subarachnoid space

The area between the arachnoid membrane and pia mater around the brain and spinal cord, filled with cerebrospinal fluid.