When the Price of Audio Books, a Normal Good, Falls

question 202

Multiple Choice

When the price of audio books, a normal good, falls, causing your purchasing power to rise, you buy more of them due to

• A)the substitution effect.
• B)the income effect.
• C)the deadweight loss effect.
• D)the elasticity effect.

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Definitions:

Misdemeanors

Less serious criminal offenses that are punishable by fines or imprisonment for a period of less than one year.

Petty Offenses

Relate to minor legal violations that typically result in a small fine or other minor penalties.

Stock Option Backdating

The practice of setting the grant date of stock options to an earlier time than their actual issuance date, often to benefit the option recipient financially.

Falsified Documents

This term refers to documents that have been illegally altered or fabricated to deceive.