Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the substitution effect by itself will

a. cause the consumer to buy more of good Y and less of good X.
b. cause the consumer to buy more of good X and less of good Y.
c. not affect the amount of goods X and Y that the consumer buys.
d. result in an upward-sloping demand for good Y because of the substitution effect.


A

Economics

You might also like to view...

When unemployment is below its natural rate, the inflation rate will eventually

A) move to its natural rate. B) decrease. C) become equal to the natural rate of unemployment. D) increase.

Economics

In 2002, __________ had the largest dollar value of mergers and acquisitions

A) the United States B) the United Kingdom C) Germany D) Japan

Economics

What are the proper monetary and fiscal responses to a recession under the activist view and the nonactivist view?

Economics

Suppose the market for home-grown peppers in the town of Smallville is comprised of two farmers. Suppose the two farmers try to collude. Explain why their collusion might not be successful

Economics