-Suppose That a Consumer Used to Be at Point S

question 105

Multiple Choice

-Suppose that a consumer used to be at point S on budget line BB' in Figure 6-5,and is now at point R on line AA'.Which of the following is true?

• A)The price of X rose.
• B)The price of X fell.
• C)The consumer's income fell.
• D)The utility level at point R is higher than at point S.
• E)The substitution effect is positive.

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Definitions:

Constructs

Abstract ideas or concepts not directly observable but used to understand and explain aspects of the world.

Predispositions

Tendencies or inclinations to think, act, or feel in a particular way that may be influenced by genetic, environmental, or psychological factors.

Five-factor Model

A model that describes personality using five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Everyday Behaviors

The typical actions or reactions of individuals in their daily life.