You Can Spend $5 for Lunch and You Would Like

question 39

Multiple Choice

You can spend $5 for lunch and you would like to have two double cheeseburgers. When you get to the restaurant, you find out the price for double cheeseburger has increased from $2.50 to $2.99. You decide to have just one double cheeseburger for lunch. This is best described as a(n) :

• A)substitution effect.
• B)income effect.
• C)buyer's reservation price effect.
• D)seller's reservation price effect.

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Definitions:

Vestibular Sense

The sensory system that contributes to balance and spatial orientation.

Olfactory Sense

The sensory system responsible for the sense of smell.

Gustation

The sense of taste, which is one of the five traditional senses, involving the perception of taste or flavor from the consumption of substances.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.