The Substitution Effect

Multiple Choice

The substitution effect

A) is generally so weak that its effect cannot be predicted.
B) for an increase in the relative price of a good is sometimes positive but sometimes negative.
C) refers to the change in the quantity demanded of a good due to a change in its relative price.
D) measures the change in the quantity of a good demanded brought about by a change in real income associated with a change in the price of the good.