________: substitution of a product for another because the price of the former has declined or increased

Fill in the blank(s) with correct word


Substitution effect

Economics

You might also like to view...

Can the median voter model help explain why third parties have generally not been successful in the United States? Explain why or why not

What will be an ideal response?

Economics

In events leading to the collapse of the housing bubble, inflated home values caused consumers to:

A. save less and spend more. B. spend less and save more. C. spend more on homes and less on all other goods. D. hold their savings to equity in their homes and stop saving more liquid forms of assets.

Economics

If the exchange rate of the Swiss franc is 1.61 francs per dollar, then the Swiss franc is worth about

a. 15 cents. b. 57 cents c. 62 cents. d. $15.70.

Economics

The profit-maximizing level of output for a firm occurs at the point at which

A) P = ATC. B) P = AVC. C) MR = MC. D) MR = ATC.

Economics