The Substitution Effect of a Price Change Refers to

question 227

Multiple Choice

The substitution effect of a price change refers to

• A)the change in quantity demanded that results from a change in price making a good more or less expensive relative to other goods that are substitutes.
• B)the shift of a demand curve when the price of a substitute good changes.
• C)the movement along the demand curve due to a change in purchasing power brought about by the price change.
• D)the shift in the demand curve due to a change in purchasing power brought about by the price change.

---

Definitions:

Organization Development

A field of study and practice focused on improving organizational efficiency and effectiveness through planned interventions.

Systematic

An approach characterized by methodical planning and organization, often applied to procedures and processes.

Passive Observers

Individuals who watch events unfold without becoming involved or influencing the outcome.

Active Agents

Individuals or entities that actively engage in processes or activities, making decisions and taking actions that influence outcomes.