The substitution effect measures how
a. the quantity demanded of one good is influenced by a change in income, with prices constant
b. the quantity demanded of one good is influenced by a change the price of another good
c. marginal utility per dollar spent is affected by income changes
d. an increase in the price of a good is effectively the same as a reduction in income
e. the quantity demanded of one good is influenced by a change in the price of that good, with income constant
E
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Someone who earns her living rolling out pizza dough
A) is inefficiently employed if she could shift to another occupation and produce more than the person she replaces. B) is inefficiently employed if someone else could roll out more dough in less time. C) thinks she has a comparative advantage in rolling out pizza dough. D) All of the above are true.
If the account manager does NOT use a Federal Reserve reverse repurchase agreement or a matched sale-purchase transaction in carrying out open market operations, he will use
A) an outright purchase or sale. B) a limited-duration purchase or sale. C) an indirect purchase or sale. D) a reverse duration purchase or sale.