The Substitution Effect

question 61

Multiple Choice

The substitution effect

• A) is generally so weak that its effect cannot be predicted.
• B) for an increase in the relative price of a good is sometimes positive but sometimes negative.
• C) measures the change in the quantity demanded of a good from a change in its relative price.
• D) measures the change in the quantity of a good demanded brought about by a change in real income associated with a change in the price of the good.