Multiple Choice
When the price of a good changes,the substitution effect occurs because:
A) the consumers' real income measured in terms of that good changes.
B) the relative price of that good changes compared to other goods in the consumption bundle.
C) the total utility of that good changes.
D) the marginal utility of that good changes.
E) consumers have an incentive to substitute irrational behavior for rational behavior.
Correct Answer:

Verified
Correct Answer:
Verified
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