Multiple Choice
The substitution effect of a price change refers to
A) the change in quantity demanded that results from a change in price making a good more or less expensive relative to other goods that are substitutes.
B) the shift of a demand curve when the price of a substitute good changes.
C) the movement along the demand curve due to a change in purchasing power brought about by the price change.
D) the shift in the demand curve due to a change in purchasing power brought about by the price change.
Correct Answer:
Verified
Correct Answer:
Verified
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