Multiple Choice
Which of the following descriptions best depicts the substitution effect?
A) the change in consumption resulting from a change in the consumer's income, holding the prices of the goods constant
B) the change in consumption resulting from a change in the consumer's income, holding the consumer's level of satisfaction constant
C) the change in consumption resulting from a change in the price of one good, holding the consumer's level of satisfaction constant
D) the change in consumption resulting from a change in the price of one good, allowing the consumer's level of satisfaction to change
Correct Answer:
Verified
Correct Answer:
Verified
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