Problem on substitution effect

The substitution effect is the modification in purchases of a good which outcome from a change only in: (1) Tastes and preferences. (2) Its associative price. (3) Real national income. (4) The wealth of consumer.

Please someone suggest me the right answer.

View Complete Question

Related Questions in Microeconomics

Q : Demand curve facing monopolistically

The demand curve that facing a monopolistically competitive firm is: (1) perfectly elastic within the short run. (2) perfectly inelastic due to numerous substitutes for its product. (3) less elastic than the demand curve facing a comp

Q : Specific market price The difference

The difference among maximum amount which consumers would willingly pay for a particular quantity of a good and the amount they really pay at a specific market price is termed as: (i) Discount rate. (ii) Mark-up factor. (iii) Familial gains. (iv) Hous

Q : Market structure in barriers of entry A

A market structure in that barriers of entry tend to be important, with sales being dominated by some large firms is: (w) a monopoly market. (x) a monopolistically competitive market. (y) an oligopoly. (z) perfectly competitive market.

Q : Depended price on present value The

The prospects for getting rich by buying assets at prices substantially below their present values are dampened by the: (w) special advantages you have in securing investment information. (x) lack of competition for information regarding profit opport

Q : Changes in quantity demand determine

When the price of Kellogg's Corn Flakes goes up by $1.89 to $2.05 and quantity demanded changes with 250 to 210, in that case the price elasticity of demand would be of: (w) .47 (x) .02 (y) 250. (z) 2.14. I need a

Q : Market demand with market power

LoCalLoCarbo has turn into the favorite of fad dieters. There in illustrated graph curve B shows: (i) LoCalLoCarbo’s marginal cost curve. (ii) LoCalLoCarbo’s average variable cost curve. (iii) LoCalLoCarbo’s average total cost curve. (iv) the market

Q : Different forms of capital account

Different forms of capital account transactions: A) Private Transactions: There are transactions which affect the liabilities and assets of individuals.

Q : Elasticity and profit maximization at

When a monopolist which does not price discriminate produces output where is demand is unitarily elastic, in that case the firm will: (i) never be capable to maximize profit. (ii) maximize profit only when all costs are fixed. (iii) maximize profit wh

Q : Consideration of positive statement

Choose the right answer . A positive statement is concerned with: A) some goal that is desirable to society. B) what should be. C) what is. D) the formulation of economic policy.

Q : Problem on Elasticity formula Whenever

Whenever the price of plastic moose heads increase from $5 to $7, monthly sales fall from 2000 to 1000 units. By using the arc elasticity formula, the price elasticity of demand will be: (i) 3.0. (ii) 1/3. (iii) 2.0. (iv) 2.5.

Discover Q & A

Leading Solution Library

Avail More Than 1423422 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1947037
Asked

3,689

Active Tutors

1423422

Questions
Answered

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

Submit Assignment