The Effect of a Compensated Price Change Is Known As

question 31

Multiple Choice

The effect of a compensated price change is known as:

• A) The price effect of a price change
• B) The income effect of a price change
• C) The substitution effect of a price change
• D) The replacement effect of a price change

---

Definitions:

Esteem Needs

According to Maslow's hierarchy of needs, these are the fourth level of human needs, involving respect, self-esteem, and recognition from others.

Self-Actualization

The achievement or actualization of an individual's talents and abilities, often seen as a universal drive or necessity in all people.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions in the body, such as heart rate, digestion, and respiratory rate, regulating the function of internal organs.

Parasympathetic Nervous System

The part of the autonomic nervous system that conserves energy by slowing the heart rate, increasing intestinal and gland activity, and relaxing sphincter muscles.