Maude Thinks Delphiniums and Hollyhocks Are Perfect Substitutes, One for One

question 4

Multiple Choice

Maude thinks delphiniums and hollyhocks are perfect substitutes, one for one. If delphiniums currently cost $2 per unit and hollyhocks cost $3 per unit and if the price of delphiniums rises to $7 per unit,

• A) there will be no change in the demand for hollyhocks.
• B) the income effect of the change in demand for delphiniums will be bigger than the substitution effect.
• C) of the change will be due to the income effect.
• D) the entire change in demand for delphiniums will be due to the substitution effect.
• E) of the change will be due to the income effect

---

Definitions:

Unilateral Contract

An agreement in which only one party makes a legally enforceable promise to pay or provide other benefits if the other party performs a specific task.

Mailbox Rule

A legal doctrine stating that an offer is considered accepted when the acceptance is dispatched, not when it is received by the offeror.

Cell Phone Number

A unique numerical identifier assigned to a mobile phone or similar wireless device.

Hula Hoop

A toy hoop that is twirled around the waist, limbs, or neck, popularized as both a children's activity and an exercise tool.