What are the two effects of a change in a price that a consumer experiences?
a. the income effect and the budget effect
b. the complement effect and the substitute effect
c. the price effect and the preference effect
d. the income effect and the substitution effect
d
You might also like to view...
Which of the following correctly describes a final good?
i. A final good is bought by its final consumer. ii. A final good can be used by a firm as a component of another good or service. iii. Investment goods cannot be a final good. A) ii and iii B) i and iii C) i and ii D) i, ii and iii E) i only
Adding globalization and large trade deficits to the standard AS/AD model creates:
A. increased domestic production and consumption. B. increased domestic production and reduced consumption. C. reduced domestic production and consumption. D. decreased domestic production and increased consumption.