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:

Pleasure Principle

A concept in psychoanalytic theory that describes the instinctual seeking of pleasure and avoiding of pain to satisfy biological and psychological needs.

Reality Principle

A psychoanalytic concept referring to the ego's management of the demands of the environment in a realistic manner, balancing them against the id's instincts.

Transference

The way the client perceives the therapist.

Therapist

A healthcare professional trained to treat emotional, mental health, or behavioral problems through various therapeutic techniques.