In General,the Substitution Effect of an Increase in the Price

question 64

Multiple Choice

In general,the substitution effect of an increase in the price of a normal good:

• A) will cause the individual to buy more of that good because they have relatively more income.
• B) will cause the individual to buy less of that good because they have relatively less income.
• C) will cause the individual to buy more of that good and less of others because it is relatively less expensive.
• D) will cause the individual to buy less of that good and more of others because it is relatively more expensive.

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Definitions:

Developed Nations

Countries characterized by high levels of economic development, advanced technological infrastructure, and high standards of living.

Child Labor

The employment of children in various industries or businesses, often in conditions that are exploitative or harmful to their development.

Poor Countries

Nations characterized by low levels of economic development, limited resources, and often high rates of poverty and insufficient access to basic needs such as education and health care.

Social Change

The transformation over time of the institutions, culture, and norms within a society, often driven by collective behavior and social movements.