If Goods X and Y Are Substitute Goods, Then an Increase

question 213

Multiple Choice

If goods X and Y are substitute goods, then an increase in the price of Y, other things being equal,

• A) results in a decrease in the amounts of both X and Y consumed.
• B) decreases the quantity demanded of Y, but has no effect on the amount of X consumed.
• C) results in a decrease in the quantity of Y consumed, but increases the demand for X.
• D) has no real effect on the quantity demanded of good Y, but increases the demand for X.

Comprehend the impact of price changes on consumer demand through income and substitution effects.

Recognize how consumers maximize utility within the constraints of their budget.

Identify the role of the consumer demand curve and its relationship with marginal utility.

Understand the concept of indifference curves and how they illustrate consumer preferences.

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Definitions:

Abraham Maslow

An American psychologist renowned for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Person-centered

A therapeutic approach developed by Carl Rogers, emphasizing the importance of being understanding and responsive to an individual's feelings and thoughts.

Potential

Refers to the capacity for development, growth, or coming into being, often unrealized or latent.

Personal Safety

Measures and practices implemented by an individual to ensure their own protection and well-being in daily activities.