The Effect of a Change in Price on the Quantity

question 164

Multiple Choice

The effect of a change in price on the quantity bought when the consumer remains indifferent between the original and the new situation is called the

• A) income effect.
• B) indifference effect.
• C) substitution effect.
• D) demand effect.

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Definitions:

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding over the course of a person's life.

Concrete Operations

A stage in cognitive development, according to Piaget, where children gain the ability to think logically about concrete events and understand the concept of conservation.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding.

Modeling Clay

A pliable material used in arts and crafts, which can be shaped and molded into various forms, often used for creating sculptures.