Illustration of Substitution Effect

Sally is very rich that money hardly matters to her, although when the price of JIF chunky peanut butter doubled Sally switched to Peter Pan chunky peanut butter. This alters is an example of the: (1) Income effect. (2) Payback effect. (3) Substitution effect. (4) Principle of equivalent net utilities per dollar. (5) Retribution effect.

Find out the right answer from the above options.

View Complete Question

Related Questions in Microeconomics

Q : Problem on cost curve The following

The following diagram illustrates the short-run average total cost curves for five different plant sizes of any firm. The shape of each curve reflects: 1) increasing returns, followed by diminishing returns. 2) economies of scale, followed by diseconomies of scale. 3)

Q : Increasing economic profits in a

Rising economic profits within a competitive market do NOT produce pressures for: (i) expansions of existing firms. (ii) entry by new firms. (iii) price hikes. (iv) increases in costs for specialized resources. (v) ultimate erosion of

Q : Pure competitors in market structures

Marginal revenue is not below the market price by the perspectives of simply: (i) monopolistic competitors. (ii) monopolists. (iii) cartel members. (iv) pure oligopolists. (v) pure competitors. Can

Q : Describe proportional in taxes as

Line T1 depicts in given graph as in below a tax system which is: (i) progressive. (ii) recessive. (iii) proportional. (iv) biased. (v) regressive.

Q : Principal-Agent Problems instance An

An instance of the principal-agent trouble would be: (i) The student failing an exam since he did not study. (ii) The crook being caught as he made much noise. (iii) My son purchase baseball cards with the money I gave him to purchase milk for t

Q : Profits of large corporations Can

Can someone help me in finding out the right answer from the given options. The enormously high profits of big corporations are: (1) Incentives which attract the competition by other firms. (2) Immune to the business cycles. (3) Mainly due to the corporate manipulatio

Q : Demands possibly the least income

Demands are possibly the least income elastic for very poor Americans for: (i) automobile services. (ii) Big Macs. (iii) lard. (iv) housing. (v) health care. Can anybody suggest me the proper expla

Q : Best statement of association between

Which of the given is the best statement of the association between macroeconomics and microeconomics: (w) Macroeconomics and microeconomics deal along with totally independent types of problems. (x) A clear line splits microeconomic questions from ma

Q : Comparative Advantage in opportunity

The most important declines in opportunity costs of multiple goods for the consumers and greatest rises in the value of net production for all societies everywhere tend to be realized whenever production is organized in accord by: (1) The optimal clas

Q : Increasing supply problem Whenever the

Whenever the equilibrium in the figure shown move from point a to point b, raised supply has taken only in the market illustrated in: (i) Panel A. (ii) Panel B. (iii) Panel C. (iv) Panel D.

Discover Q & A

Leading Solution Library

Avail More Than 1442184 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1925823
Asked

3,689

Active Tutors

1442184

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment