The Substitution Effect of a Price Change

question 89

Multiple Choice

The substitution effect of a price change

• A)will result in the consumer buying less of a good at a lower price.
• B)will result in the consumer buying less of a good at a higher price.
• C)outweighs the income effect for Giffen goods.
• D)is equal to the income effect for normal goods.
• E)is equal to the income effect for inferior goods.

---

Definitions:

Overall Arousal Levels

A general state of alertness or activation of the nervous system, affecting physical and psychological responses.

Accuracy of Polygraphs

The degree to which polygraph tests can reliably and validly detect deception, often debated in terms of effectiveness.

Seat of Emotions

A metaphorical term that refers to the brain regions responsible for the generation and regulation of emotions, typically involving the limbic system.

Amygdala

A region in the brain involved in processing emotions, particularly fear and aggression, and forming emotional memories.