When the Price of X Rises, Marvin Responds by Changing

question 6

Multiple Choice

When the price of x rises, Marvin responds by changing his demand for x.The substitution effect is the part of this change that represents his change in demand

• A)holding the prices of substitutes constant.
• B)if he is allowed to substitute as much x for y as he wishes.
• C)if his money income is held constant when the price of x changes.
• D)if the prices of all other goods are held constant.
• E)None of the above.

---

Definitions:

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, formed from the remains of living organisms and serving as a major global energy source.

Resource Constraints

Limitations on the availability of resources such as time, money, and labor that can affect the completion of projects or the achievement of goals.

Rapid Deforestation

The fast-paced clearing or thinning of forests by humans, often for agriculture, logging, or urban development, leading to significant ecological and environmental impacts.

Sustainable Products

Goods that are produced and used in ways that do not deplete natural resources or harm the environment, thereby supporting long-term ecological balance.