You Can Spend $10 for Lunch and You Would Like

question 145

Multiple Choice

You can spend $10 for lunch and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger. This is best described as:

• A)the substitution effect of a price change.
• B)the income effect of a price change.
• C)a decrease in the buyer's reservation price.
• D)an increase in the buyer's reservation price.

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Definitions:

Sensory Register

The component of memory that receives and holds input from the sensory systems for a very short period of time, allowing the brain to process and respond to this information.

Information-Processing Theorists

Psychologists who study how human beings process information, considering the mind as a computer where information comes in, is processed, and leads to certain outcomes.

Inaccurate Testimony

False or incorrect evidence presented by a witness during legal proceedings.

Criminal Proceedings

The legal processes and steps taken in the system of justice involving the investigation, prosecution, and defense of a person accused of a crime.