According to the Substitution Effect, a Decrease in the Price

question 33

Multiple Choice

According to the substitution effect, a decrease in the price of a product leads to an increase in the quantity of the product demanded because buyers:

• A) have more real income.
• B) purchase fewer substitute goods.
• C) purchase more of the now relatively less expensive good.
• D) purchase more complementary goods.

---

Definitions:

Ageism

A prejudice whereby people are categorized and judged solely on the basis of their chronological age.

Chronological Age

The amount of time that has passed from an individual's birth to a specific date, measured in years.

Primary Aging

The natural and inevitable process of bodily deterioration that occurs throughout life, independent of diseases or environmental factors.

Universal

A term that refers to something that applies to all cases or situations without exception.