Refer to the Graph Below

question 58

Multiple Choice

Refer to the graph below. Assume the consumer has an income of $100, the price of X is $2 and the price of Y is $1. According to the graph, the substitution effect of a decrease in the price of X from $2 to $1 is equal to:

• A)5
• B)30
• C)20
• D)25

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Definitions:

Impulsive Behaviors

Actions performed with minimal deliberation or consideration of the consequences, often driven by immediate gratification or the avoidance of discomfort.

Borderline Personality Disorder

A mental disorder featuring changeable emotional responses, behavioral patterns, and connections with others.

Dialectical Behavior Therapy

A comprehensive cognitive-behavioral treatment that aims to help people with complex psychological disorders to manage their emotions and reduce conflict in relationships by combining principles of mindfulness, emotion regulation, distress tolerance, and interpersonal effectiveness.

Posttraumatic Stress Disorder

A psychological disorder caused by exposure to a horrifying incident, leading to persistent nightmares, distressing recollections, and intense stress.