When the price of x rises, Marvin responds by changing his demand for x. The substitution...
When the price of x rises, Marvin responds by changing his demand for x. The substitution effect is the part of this change that represents his change in demand
|
a. |
holding the prices of substitutes constant. |
|
b. |
if he is allowed to substitute as much x for y as he wishes. |
|
c. |
if his money income is held constant when the price of x changes. |
|
d. |
if the prices of all other goods are held constant. |
|
e. |
None of the above. |
Homework Answers
"A"
Holding the price of the substitutes constant, if the price of the substitutes also considered changing then the substitution effect will not hold. the answer is "A".
Add Answer to:
When the price of x rises, Marvin responds by changing
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