A Change in the Price of a Good Has Two

question 269

Multiple Choice

A change in the price of a good has two effects on the quantity consumed.What are these effects?

• A)the income effect and the substitution effect
• B)the utility effect and the budget effect
• C)the total utility effect and marginal utility effect
• D)the consumption effect and expenditure effect

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Definitions:

Enforceable

Capable of being imposed or upholding through legal means.

Liability

The state of being legally responsible for something, typically involving debt or legal obligations.

Landlord

An individual or entity that owns a property and rents it out to tenants in exchange for a periodic payment.

Exculpatory Clause

A clause that releases a contractual party from liability in the event of monetary or physical injury, no matter who is at fault.