The Substitution Effect Will Never Induce a Consumer to Buy

question 142

True/False

The substitution effect will never induce a consumer to buy more of a good when its price increases.

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.

Id

A component of Sigmund Freud's psychoanalytic theory, representing the instinctual drives and unconscious desires.

Libido

According to Freud, psychical energy derived from physiological drives.

Pleasure Principle

A concept in psychoanalytic theory referring to the instinctive drive to seek pleasure and avoid pain.