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:

Need Awareness

The initial stage in the purchasing process where a customer becomes conscious of a problem or need that requires a solution.

Easiest People

Individuals who are perceived as more compliant or agreeable in a given situation, especially in contexts like sales or negotiations.

Sell

The act of exchanging a product or service for monetary value, aiming to satisfy customer needs while achieving business revenue objectives.

Features

Characteristics or attributes of a product or service that are considered significant or beneficial.