pickelswolf3672 pickelswolf3672
  • 02-02-2018
  • Business
contestada

When the price of a good rises, consumers buy a smaller quantity because of the ________ effect and the ________ effect?

Respuesta :

LearnGrow
LearnGrow LearnGrow
  • 11-02-2018
When the price of a good rises, consumers buy a smaller quantity because of the substitution effect and the income effect.  A change in the relative prices of goods results in change in consumption of that goods and that is denoted as the substitution effect. The change in purchasing power on the other hand which also result in change in consumption is referred to as the income effect.
Answer Link

Otras preguntas

if an object has a kinetic energy of 30 j and mass of 34kg how fast is the object moving ?
A SINGLE displacement reaction is like... options: ... when two couples are dancing on the floor and they each swap partners. Now both men are dancing wit
what did ismene hope to accomplish?
help me please asap, thank you!
Is y = 135 a solution to y/45 = 3
Help me with this pls.
Which of the following activities is most likely to improve muscular endurance? A. high jumping B. long distance running C. sprinting D. throwing a fast ball
Use parentheses to make this statement true: 8 x 4 - 2 x 3 + 8 (divided by) 2 = 25
Estimate the solution 7,390.7-0.874
What’s the polynomial in standard form