Suppose a Consumer Can Purchase Only Two Goods,soap and Apples

question 109

Multiple Choice

Suppose a consumer can purchase only two goods,soap and apples.If the price of soap falls and the consumption of apples increases,we can conclude that the increased consumption of apples is due to

• A)neither the income effect nor the substitution effect.
• B)both the income effect and the substitution effect.
• C)the income effect only.
• D)the substitution effect only.
• E)the deflation effect.

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Definitions:

Compassionate

Involves showing sympathy and a desire to help others.

Manipulative

Manipulative characterizes behavior that is scheming or calculating, often with the intention of controlling or influencing others in a deceitful way.

Upward Appeal

A strategy where individuals seek the support or approval of higher-level members within an organization to influence decisions or gain favor.

Incentive Cuts

The reduction or removal of motivators or rewards previously offered, often as a cost-saving measure.