Which of the Following Statements Is FALSE Regarding Consumer Choice

question 410

Multiple Choice

Which of the following statements is FALSE regarding consumer choice?

• A) Each change in price has a substitution effect and a real income effect.
• B) When price falls, the consumer chooses in favor of the cheaper good.
• C) Diminishing marginal utility is one reason for a downward sloping demand curve.
• D) Purchasing power has an inverse relationship with the rise in income.

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Definitions:

Hertz

The unit of frequency in the International System of Units (SI), equating to one cycle per second.

Auditory Neuron

a nerve cell that is involved in the process of hearing, transmitting auditory signals from the ear to the brain.

Pitch

Pitch refers to the perceived frequency of a sound, determining how "high" or "low" it sounds.

Basilar Membrane

A membrane running the length of the cochlea; sound waves cause a deformation of this membrane, bending the hair cells in the cochlea and thus stimulating the auditory receptors.