The Effect of a Compensated Price Change Is Known As

question 43

Multiple Choice

The effect of a compensated price change is known as:

• A) the price effect of a price change.
• B) the income effect of a price change.
• C) the substitution effect of a price change.
• D) the replacement effect of a price change.

---

Definitions:

Punishment

A method used to enforce discipline or impose a penalty for violating laws or rules, ranging from fines to imprisonment.

First Continental Congress

A meeting in 1774 of delegates from twelve of the thirteen American colonies to address grievances against British policies and to organize colonial resistance.

Coercive Acts

A series of four acts passed by the British Parliament in 1774 to punish Massachusetts colonists for the Boston Tea Party, leading to greater unity among the American colonies against Britain.

Independence

The state of being free from external control and constraint, often referring to a nation's sovereignty and the right to self-governance.