When the Price of a Product Rises, Consumers with a Given

question 78

Multiple Choice

When the price of a product rises, consumers with a given money income shift their purchases to other products whose prices are now relatively lower. This statement describes

• A) an inferior good.
• B) the rationing function of prices.
• C) the substitution effect.
• D) the income effect.

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Definitions:

Ethnic Community

A group of people sharing a common ethnic background, cultural heritage, language, or religion, often forming a community within a larger society.

Asian American Buddhists

Members of the Asian American community who practice Buddhism, reflecting a diversity of traditions and cultural backgrounds.

Asian American Christians

Individuals of Asian descent in the United States who adhere to various branches of Christianity, navigating the interplay of cultural and religious identities.

Pan-Asian Congregations

Communities or assemblies formed by individuals of Asian descent from various countries, focusing on shared cultural, religious, or social interests.