Consider the Substitution and Income Effects of a 15% Increase

question 103

Multiple Choice

Consider the substitution and income effects of a 15% increase in the price of a good.Of the goods listed below,which is most likely to have the smallest income effect?

• A)groceries
• B)restaurant meals
• C)gasoline
• D)paperclips
• E)dishwashers

---

Definitions:

Securities Markets

The financial marketplaces where securities, such as stocks and bonds, are issued and traded.

Compulsory Jurisdiction

The authority given to a judicial body by which it has the right to hear and decide cases within a particular territory without the need for agreement from the parties involved.

Domestic Law

The body of law that governs activities within a specific country or state, as opposed to international law.

International Courts

Judicial tribunals established to adjudicate disputes between states and other entities with international legal standing.