According to the substitution effect, a decrease in the price of a product leads to an increase in the quantity demanded because buyers:
a. purchase more complementary goods.
b. purchase more substitute goods.
c. purchase fewer substitute goods.
d. have more real income.
c
Economics
You might also like to view...
The share of corporate tax in total federal revenues
A) has declined over the past few decades to a relatively low level. B) is larger than the other components of federal revenue. C) has grown significantly in each of the past 10 years. D) is the smallest of all the components of federal tax revenue.
Economics
Since 1970, the world Gini ratio has ________ indicating that the world distribution of income has ________
A) risen; become more equal B) fallen; become more equal C) risen; become less equal D) not changed; not changed
Economics