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 : Price hike in short run I have a

I have a problem in economics on Price hike in short run. Please help me in the following question. In short run, the demand curve for the potatoes will not be influenced by price hikes for: (i) Potatoes. (ii) Bread. (iii) Rice. (iv) Steak.

Q : Labor Contracts-Check-off Provisions

I have a problem in economics on Labor Contracts-Check-off Provisions problem. Please help me in the given question. The statement of check-off provision: (1) Was outlawed through Taft Hartley Act. (2) Is unlawful in union shops. (3) Simplifies the un

Q : Price elasticity when total revenue

Total revenue grows while the price of a good is cut when the price elasticity of: (w) demand exceeds the price elasticity of supply. (x) substitute goods is less than one. (y) supply is into a relatively elastic range. (z) demand is

Q : Problem regarding to price ceilings and

Persistent shortages of a good are mostly all the time attributable to: (w) legal ceiling prices that are set below equilibrium. (x) recessions that yield high unemployment rates. (y) price gouging by firms with monopoly power. (z) legal price floors

Q : Public international law issues The

The following is a case problem around which the examination paper will be based. In preparation for the examination, you should study the problem scenario and identify the possible public international law issues which might arise, and how the law might be applied to

Q : Monopsony Power and Demand for Labor

Subsequent to adjusting for inflation, Alex Rodriquez salary with NY Yankees was much higher in the year 2006 than Henry Aaron's salary with the Atlanta Braves in the year 1970s that implies that: (i) The 2006 Yankees was more liberal than the year 1970s Braves. (ii)

Discover Q & A

Leading Solution Library

Avail More Than 1460280 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1925011
Asked

3,689

Active Tutors

1460280

Questions
Answered

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

Submit Assignment