The Substitution Effect Shows That

question 50

Multiple Choice

The substitution effect shows that

• A) if the price of a good increases, consumers buy more of that good and less of all others.
• B) if the price of a good falls relative to all other goods, consumers buy less of that good and more of all others.
• C) if the price of a good falls, consumers buy less of all goods.
• D) if the price of a good rises, consumers buy less of that good and more of others.

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Definitions:

Morphemes

The smallest meaningful units in a language, such as words, prefixes, or suffixes.

Semantics

The branch of linguistics and logic concerned with meaning, including the relations between words, phrases, signs, and symbols and what they stand for.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, especially in terms of word order and agreement.

Phonology

The branch of linguistics that studies the sound systems of languages and their function in communication.