Walt Considers X and Y to Be Perfect Substitutes

question 19

Multiple Choice

Walt considers x and y to be perfect substitutes.They originally cost $10 and $9 respectively.His income is $720.One day the price of x drops to $8.

• A)The income effect increases the quantity of y by 90.
• B)The substitution effect increases the quantity of y by 80.
• C)The substitution effect increases the quantity of x by 90.
• D)The income effect increases the quantity of x by 80.
• E)None of the above.

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Definitions:

Timing

The selection, judgment, or control of when something should happen or be done.

Active Listening

A technique of listening with all senses, as a way to ensure understanding, empathy, and engagement during communication.

Eye Contact

The act of looking directly into another person's eyes, often used as a form of nonverbal communication.

Open-Ended Response

A type of answer that allows for a free-form response, encouraging detailed and expressive replies.