The Price of Cereal Rises

question 283

Multiple Choice

The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of

• A) a decrease in the quantity demanded of cereal because of the substitution effect.
• B) an increase in the quantity demanded of eggs because of the income effect.
• C) a decrease in the quantity supplied of cereal because of the substitution effect.
• D) an increase in the quantity supplied of eggs because of the income effect.

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Definitions:

Therapeutic Response

The positive change or benefit a patient experiences after treatment or therapy.

Self-Blame

The act of attributing personal failures or negative events to one's own deficiencies or actions.

Coping Strategy

A method or technique used to manage or overcome demands and conflicts in life.

Repression

The unconscious exclusion of painful impulses, desires, or fears from the conscious mind.