The notion that when the price of the good you want rises you will buy less of it because you will find another good that will do instead is provided as the explanation for
A. the substitution effect.
B. diminishing marginal utility.
C. the real-balances effect.
Answer: A
Economics
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Farming in the New England colonies tended to be
(a) large scale. (b) worked by slaves. (c) small scale and worked by members of the family. (d) exported to England and its trading partners for high profits.
Economics
What happens as the result of a shortage?
A) There is downward pressure on prices. B) There is upward pressure on prices. C) Consumers begin to view the good as an inferior good because they have a hard time finding it. D) Supply of the good decreases.
Economics