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:

Alkoxides

Anions formed from the deprotonation of alcohols, typically represented as RO-, where R is an alkyl group.

Leaving Groups

Atoms or groups that can depart with a pair of electrons during a chemical reaction, facilitating the formation of a new bond.

Reaction

A process in which substances interact, producing new substances with different properties.

Forward Direction

In the context of a chemical reaction, refers to the progression of reactants to form products, as opposed to the reverse process.