According to the Substitution Effect, What Impact Will an Increase

question 37

Multiple Choice

According to the substitution effect, what impact will an increase in the price of oranges have on consumers?

• A) It will leave consumers with less money to spend on all goods.
• B) It will cause consumers to consume fewer apples because more money is spent on oranges.
• C) It will cause consumers to replace some oranges with other fruit that is now relatively cheaper than oranges.
• D) It will cause consumers to spend more on oranges because a higher price signals that oranges are better than apples.

---

Definitions:

Autonomic Nervous System

A part of the nervous system that controls involuntary functions of the body, such as heart rate, digestion, and respiratory rate.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, associated with higher cognitive processes such as reasoning, planning, parts of speech, movement, emotions, and problem solving.

Parietal Lobe

An area in the cerebral cortex responsible for processing sensory data related to the positioning of body parts, as well as analyzing visual information and managing language and mathematical operations.

Temporal Lobe

A region of the brain located beneath the temples, involved in processing auditory information and is associated with memory and emotion.