The income and substitution effects of a price change occur because:
a. consumer incomes are not constant.
b. consumer substitution rates are not constant.
c. income and substitution effects never occur simultaneously.
d. of diminishing marginal utility and the equimarginal principle.
e. of increasing marginal utility and the equimarginal principle.
d
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Nominal GDP is GDP
A) using current market values. B) during a recession. C) minus depreciation. D) after adjusting for any price changes. E) that ignores depreciation.
Years ago, thousands of country music fans risked their lives by rushing to buy tickets for a Willie Nelson concert at Carnegie Hall. This behavior indicates
a. the ticket price was above the equilibrium price. b. the ticket price was below the equilibrium price. c. the ticket price was at the equilibrium price. d. nothing about the equilibrium price.