As coffee becomes more expensive, Joe starts drinking tea instead of coffee. This is called:
A. a decrease in reservation price.
B. the substitution effect of a price change.
C. the income effect of a price change.
D. a decrease in demand.
Answer: B
Economics
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According to John Rawls, the fair distribution of income is the one that
A) makes the poorest person as well off as possible. B) makes the average person as well off as possible. C) results in equal income for all society members. D) is based on fair rules.
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Explain how mutual funds are advantageous to small investors
Economics