As coffee becomes more expensive, Joe starts drinking tea instead of coffee, This is called: a. a decrease in demand. b. a decrease in reservation price. c. the substitution effect of a price change. d. the income effect of a price change.
As coffee becomes more expensive, Joe starts drinking tea instead of coffee, This is called: a. a decrease in demand. b. a decrease in reservation price. c. the substitution effect of a price change. d. the income effect of a price change.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 21SQ
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As coffee becomes more expensive, Joe starts drinking tea instead of coffee, This is called:
a. a decrease in
b. a decrease in reservation
c. the substitution effect of a price change.
d. the income effect of a price change.
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