A Change in the Price of a Good Has

question 24

Multiple Choice

A change in the price of a good has

• A)an income effect only.
• B)a substitution effect only.
• C)a substitution effect and an income effect.
• D)an income effect that exceeds the substitution effect.
• E)a substitution effect that exceeds the income effect.

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Definitions:

Heredity

The passing on of physical or mental characteristics genetically from one generation to another.

Behaviour

The actions or reactions of an individual or system in response to external or internal stimuli.

Sociohistorical Context

The social, cultural, and historical background or setting that influences an event, phenomenon, or person's perspective and behavior.

Observation

The action or process of closely monitoring or watching something or someone to gain information.