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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