Suppose Lois Usually Buys Two Cups of Coffee for Two

question 193

Multiple Choice

Suppose Lois usually buys two cups of coffee for two dollars each and one scone for two dollars each. If the price of scones falls to one dollar each and she now buys two cups of coffee and two scones, this illustrates the

• A) substitution effect.
• B) marginal rate of substitution.
• C) total utility effect.
• D) real-income effect.

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Definitions:

Electrically Charged

A condition of having an imbalance of electric charge, either positive or negative.

Resting Potential

The electrical charge across the neuronal membrane when the neuron is not actively transmitting signals.

Refractory Period

The time right after a stimulus when a nerve or muscle cannot respond to additional stimulation.

Positive Charge

An electrical charge possessed by protons, which is opposite in sign to the charge carried by electrons.