There Are Many Options Available to Consumers When It Comes

question 84

Multiple Choice

There are many options available to consumers when it comes to breakfast cereals.So,if Kellogg's significantly increases the price of Rice Krispies,consumers are more apt to buy alternate cereals instead.This illustrates which concept?

• A) the income effect
• B) the substitution effect
• C) the break-even point
• D) the target return effect
• E) cross-price elasticity

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Definitions:

Invest

To allocate resources, typically money, in the expectation of generating an income or profit.

Variance

A statistical measure that represents the dispersion of a dataset relative to its mean, indicating how spread out the data points are.

Coefficient Of Correlation

A numerical measure that quantifies the strength of the correlation between the relative variations of two variables.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.