When the Price of X Rises, Marvin Responds by Changing

question 6

Multiple Choice

When the price of x rises, Marvin responds by changing his demand for x.The substitution effect is the part of this change that represents his change in demand

• A)holding the prices of substitutes constant.
• B)if he is allowed to substitute as much x for y as he wishes.
• C)if his money income is held constant when the price of x changes.
• D)if the prices of all other goods are held constant.
• E)None of the above.

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Nebulous

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Systematic errors in thinking and perception that affect decisions and judgments.

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