An Imaginary Adjustment of a Consumer's Income at the Same

question 155

Multiple Choice

An imaginary adjustment of a consumer's income at the same instant a price changes, so the consumer has just enough to buy the same goods and services at the new price is:

• A) the substitution effect.
• B) the income effect.
• C) an income-compensated price change.
• D) a price-compensated utility change.

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Definitions:

UI

Universal Instantiation, a logical rule of inference stating if something is true for everything in a category, it is true for any specific instance of that category.

Quantifier-Negation Rule

A principle in formal logic that deals with the relationship between quantifiers and the negation of statements.

Quantifier

A symbol or word in logic that specifies the quantity of specimens in the domain of discourse that satisfy an open formula.

Negation

The contradiction or denial of something, or the operation of inverting the truth value in logic.