A Consumer Considers Apples and Oranges to Be Perfect Substitutes,one

question 11

Multiple Choice

A consumer considers apples and oranges to be perfect substitutes,one for one.If apples currently cost $5 per unit and oranges $6 per unit,and if the price of apples increases to $9 per unit:

• A)the income effect of the change in demand for apples will be bigger than the substitution effect.
• B)there will be no change in demand for oranges.
• C)the entire change in demand for apples will be due to the substitution effect.
• D)one-quarter of the change in demand for apples will be due to the income effect.

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Definitions:

Essential Job Skill

A crucial ability or expertise required to perform effectively in a specific job role.

Mind Map

A diagram used to visually organize information, often branching from a central idea to show relationships among pieces of a whole.

Informal Outlines

A loosely structured guide for writing or speaking that organizes thoughts and ideas without strict adherence to a formal outline format.

Big Picture

Understanding the overall perspective or larger context of a situation, beyond the immediate details.