When the Price of a Good Falls, That Good Becomes

question 86

Multiple Choice

When the price of a good falls, that good becomes cheaper compared to other goods so consumers tend to choose that good over other goods. This is best explained as _____

• A) irrational behavior.
• B) money income.
• C) real income.
• D) substitution effect of a price change.
• E) income effect of a price change.

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Definitions:

Cathode

An electrode or conductor from which current flows out.

Electrode

A conductor through which electric current enters or leaves a non-metallic medium, such as an electrolytic cell, arc lamp, or semiconductor.

Current Flows

The movement of electric charge carriers, such as electrons, through a conductor.

Field Winding

Coils of wire (windings) placed on the field poles of a generator or motor that create a magnetic field when electric current flows through them.