For Normal Goods Like Cola and Pizza,what Is a Likely

question 49

Multiple Choice

For normal goods like cola and pizza,what is a likely result of the substitution effect when the price of pizza falls

• A)The consumer feels richer, so he buys more cola.
• B)The consumer feels richer, so he buys less cola.
• C)Cola becomes relatively more expensive, so the consumer buys less cola.
• D)Cola becomes relatively less expensive, so the consumer buys less cola.

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Definitions:

Proposition

A pronouncement that exhibits a view or judgment.

Converse

In logic, the converse of a statement is formed by swapping the hypothesis and conclusion of the original statement.

Proposition

A proclamation or assertion signaling an assessment or belief.

Obverse

The statement formed by negating both the subject and predicate of a given categorical proposition and changing the quality of the original proposition (from affirmative to negative or vice versa).