Which of the Following Describes the Substitution Effect of a Price

question 95

Multiple Choice

Which of the following describes the substitution effect of a price change?

• A)The change in demand that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.
• B)The change in quantity demanded of a good that results from the effect of a change in price on consumer purchasing power, holding everything else constant.
• C)The change in quantity demanded of a good that results from the change in the price of a substitute for the good.
• D)The change in quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.

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Definitions:

Perceptual Analyzers

Systems or processes in the human brain that interpret stimuli from the environment by breaking down the input into more manageable components.

Kohler

Refers to Wolfgang Köhler, who was a German psychologist and a key figure in the development of Gestalt psychology, emphasizing insight in learning and problem-solving.

Cognitive Processing

The mental operations involved in acquiring, storing, retrieving, and using information.

Associative Learning

The learning method through which a connection is established between a pair of stimuli or between a behavior and a specific stimulus.