The Substitution Effect of an Increase in the Price of Peaches

question 287

Multiple Choice

The substitution effect of an increase in the price of peaches is

• A)the change in the quantity demanded that results from a change in the price of peaches, making peaches more expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.
• B)the change in the demand for nectarines (a substitute good)that results when peaches become more expensive relative to nectarines, holding constant the effect of the price change on consumer purchasing power.
• C)the change in the quantity of peaches demanded that results from the effect of the change in the price of peaches on the consumer's purchasing power.
• D)the change in the demand for peaches that results when the price of peaches increases.

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Definitions:

Experience Guilt

The emotional state that arises from the realization or belief that one has caused harm or violated a moral standard.

Self-Control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Inhibition

The process of restraining or suppressing a response, action, or cognitive process, often discussed in psychology and neuroscience.

Aggressive Behaviors

Actions intended to cause harm or force upon others, either physically or emotionally, as a means of asserting dominance, expressing frustration, or achieving a goal.