In Problem 4, Maude Thinks Delphiniums and Hollyhocks Are Perfect

question 9

Multiple Choice

In Problem 4, Maude thinks delphiniums and hollyhocks are perfect substitutes, one for one. If delphiniums currently cost $5 per unit and hollyhocks cost $6 per unit and if the price of delphiniums rises to $9 per unit,

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

---

Definitions:

Attribution

The process of explaining the causes of behavior or events, often attributing them to internal dispositions or external situations.

Selective Perception

The tendency to perceive or focus on information that confirms one's preconceptions or beliefs while ignoring contradictory evidence.

Stereotyping

The act of generalizing characteristics, attributes, and behaviors to all members of a particular group without considering individual differences.

Emotional Stability

refers to an individual's ability to remain stable and balanced in their emotions, particularly when faced with stress or adverse situations.