The Price of a Large Pepperoni Pizza Used to Be

question 406

Multiple Choice

The price of a large pepperoni pizza used to be $12, but this week the price rose to $18. With a budget of just $28, you can't afford as many pizzas at the higher price. This change in consumer behavior reflects the

• A) real income effect.
• B) substitution effect.
• C) nominal income effect.
• D) concept of diminishing marginal utility.

---

Definitions:

Probabilities

Quantitative measures that indicate the likelihood of a specific event or outcome occurring.

Associations

Relationships or connections between two or more variables, where changes in one variable are related to changes in another.

Predictions

Forecasts or anticipations about future events based on current evidence or trends.

Paired Samples T-tests

A statistical procedure used to compare the means of two related groups to determine if there is a significant difference between them.