You can spend $10 for lunch and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger. This is best described as:
A. the income effect of a price change.
B. a decrease in the buyer's reservation price.
C. the substitution effect of a price change.
D. an increase in the buyer's reservation price.
Answer: A
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Answer the following statement true (T) or false (F)
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A. life-cycle B. Fisher effect C. Taylor D. portfolio allocation
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