A Consumer's Switch to Another Similar Good When the Price

question 105

Multiple Choice

A consumer's switch to another similar good when the price of the preferred good increases is termed the:

• A) income effect.
• B) substitution effect.
• C) utility effect.
• D) marginal effect.

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Definitions:

Socioeconomic Standing

A measure of an individual's or family's economic and social position in relation to others based on income, education, and occupation.

Independence Movement

A political and social movement that seeks to gain or has gained full sovereignty and independence for a country or region from another state or empire.

Institution of Slavery

A legal or societal system in which individuals are owned by others, denied freedom, and forced to work without compensation.

Samuel Johnson

An English writer, poet, and lexicographer best known for his dictionary of the English Language published in 1755.