Which of the following describes the substitution effect of a price change?
A) The change in quantity demanded of a good that results from the change in the price of a substitute for the good.
B) The change in demand that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.
C) The change in quantity demanded of a good that results from the effect of a change in price on consumer purchasing power, holding everything else constant.
D) The change in quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.
D
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The area under the market demand curve shows the _____________ benefit to _____________.
a. total; consumers b. marginal; consumers c. total; producers d. marginal; producers e. equilibrium; consumers
In the above figure, the average total cost curve is curve
A) A. B) B. C) C. D) D.