If the Price of Tulips Falls, the Substitution Effect Due

question 72

Multiple Choice

If the price of tulips falls, the substitution effect due to the price change will cause

• A)an increase in the demand for tulips.
• B)an increase in the demand for roses, a substitute for tulips.
• C)an increase in the quantity demanded of tulips.
• D)an increase in the quantity supplied of tulips.

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Definitions:

Principal Place of Business

The main location where a company's central operations and management are conducted.

Diversity-of-Citizenship

A basis for federal court jurisdiction when the parties involved in a lawsuit are citizens of different states or a foreign country and the amount in dispute exceeds a specified threshold.

$75,000

A monetary amount, which could be specified in legal or financial contexts, such as a threshold for federal court jurisdiction in diversity cases in the United States.

Subject-Matter Jurisdiction

The jurisdiction of a tribunal to consider legal disputes within a certain category or connected to a particular topic.