The substitution effect of a price change for product X is the change in consumption of X associated with a change in
A) the price of X, with the level of utility held constant.
B) the price of X, with the level of real income not considered.
C) the price of X, with the prices of other goods changing by the same percentage as that for product X.
D) income, with prices of other goods held constant.
A
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Unless goods are Giffen goods, own-price elasticities of demand are always negative.
Answer the following statement true (T) or false (F)
If the inflation rate in Japan is higher than the inflation rate in the United States
A) there will be an increase in U.S. imports from Japan. B) there will be an increase in Japanese exports to the United States. C) there will be no change is U.S. imports from Japan. D) there will be a decrease in U.S. imports from Japan.
The following table shows John's total utility derived from billiards and bowling games. Assume John has $30 to spend on a game of billiards and/or a game of bowling. A game of billiards costs him $4, and a game of bowling costs him $2. Which of the following is John's utility-maximizing combination of the games of billiards and the games of bowling? Quantity Total Utility Games of billiards Games of bowling 0 0 0 1 100 70 2 180 130 3 240 180 4 272 210 5 288. 218 6 292. 222
a. ?Twelve games of bowling b. ?Five games of billiards and two games of bowling c. ?Four games of billiards and four games of bowling d. ?Five games of billiards and five games of bowling e. ?Three games of billiards and eight games of bowling
In 2010, the wealthiest 1 percent of U.S. households held about ____ percent of U.S. household wealth
A. 35. B. 77. C. 23. D. 32.