Which of the Following Describes the Substitution Effect of a Price

question 95

Multiple Choice

Which of the following describes the substitution effect of a price change?

• A)The change in demand that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.
• B)The change in quantity demanded of a good that results from the effect of a change in price on consumer purchasing power, holding everything else constant.
• C)The change in quantity demanded of a good that results from the change in the price of a substitute for the good.
• D)The change in quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.

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Definitions:

Abstract Reasoning

The ability to analyze information, detect patterns and relationships, and solve problems on a complex, abstract level.

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The effectiveness and efficiency with which an individual fulfills their roles and responsibilities at work.

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The task of transporting and handing over pizza from the restaurant to the customer's location, often performed as a job by individuals.

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The rate at which someone or something is able to move or operate.