When the Price of a Good Changes,the Substitution Effect Occurs

question 97

Multiple Choice

When the price of a good changes,the substitution effect occurs because:

• A)the consumers' real income measured in terms of that good changes.
• B)the relative price of that good changes compared to other goods in the consumption bundle.
• C)the total utility of that good changes.
• D)the marginal utility of that good changes.
• E)consumers have an incentive to substitute irrational behavior for rational behavior.

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Definitions:

Corticospinal Tract

A major neural pathway that runs from the brain's cortex through the spinal cord, coordinating voluntary motor movements.

Corticobulbar Tract

Neural pathways that conduct impulses from the brain to the brainstem, influencing movements in the head and neck.

Rubrospinal Tract

A neural pathway in the central nervous system involved in the control of voluntary movements.

Vestibulospinal Tract

A neural pathway that sends information from the inner ear balance apparatus to the muscles involved in maintaining posture and balance.