Suppose That as the Price of Apples Rises, People Switch

question 164

Multiple Choice

Suppose that as the price of apples rises, people switch from eating apples to eating oranges. This is known as:

• A)the normal effect of a price change.
• B)the income effect of a price change.
• C)a decrease in the demand for apples.
• D)the substitution effect of a price change.

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Definitions:

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, associated with complex cognitive behavior, personality expression, decision making, and moderating social behavior.

Amygdala

A part of the brain's limbic system involved in emotion, particularly fear and pleasure.

Frontal Lobes

Lobes at the front of the brain’s cerebral cortex; they contain areas involved in short-term memory, higher-order thinking, initiative, social judgment, and (in the left lobe, typically) speech production.

Cerebral Cortex

is the outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.