Maude Thinks Delphiniums and Hollyhocks Are Perfect Substitutes, One for One.If

question 2

Multiple Choice

Maude thinks delphiniums and hollyhocks are perfect substitutes, one for one.If delphiniums currently cost $4 per unit and hollyhocks cost $5 per unit and if the price of delphiniums rises to $9 per unit,

• A)the income effect of the change in demand for delphiniums will be bigger than the substitution effect.
• B)1/5 of the change in demand will be due to the income effect.
• C)the entire change in demand for delphiniums will be due to the substitution effect.
• D)there will be no change in the demand for hollyhocks.
• E)4/5 of the change in demand will be due to the income effect.

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Definitions:

Self-Actualization Needs

The need to be the best one can be; at the top of Maslow’s hierarchy.