The Substitution Effect of a Price Change Leads Consumers to ________

question 115

Multiple Choice

The substitution effect of a price change leads consumers to ________ their demand for goods whose prices have risen.The income effect leads consumers to buy less of all ________ goods whose prices have risen.

• A)reduce; normal
• B)increase; inferior
• C)increase; normal
• D)reduce; Giffen
• E)reduce; complement

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Definitions:

Photochemical Smog

Mixture of several air pollutants that injure plant tissues, irritate eyes, and cause respiratory problems in humans.

Nucleic Acids

Essential biomolecules for life, such as DNA and RNA, are responsible for carrying genetic information and participating in the synthesis of proteins.

Nitrogen

A chemical element with symbol N and atomic number 7, essential for all living organisms, primarily involved in protein synthesis and other vital biological processes.

Proteins

Large, complex molecules essential for the structure, function, and regulation of the body's tissues and organs.