Every Friday for two months, Shelley visits her favorite pizza place and buys a large pepperoni and olive pizza. After nine weeks, she decides that she has grown tired of pepperoni and olive pizza, so she no longer buys it. This is an example of what principle of demand? A. substitution effect B. law of demand C. diminishing marginal utility D. income effect
Every Friday for two months, Shelley visits her favorite pizza place and buys a large pepperoni and olive pizza. After nine weeks, she decides that she has grown tired of pepperoni and olive pizza, so she no longer buys it. This is an example of what principle of demand? A. substitution effect B. law of demand C. diminishing marginal utility D. income effect
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 8P
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Question
3.
Every Friday for two months, Shelley visits her favorite pizza place and buys a large pepperoni and olive pizza. After nine weeks, she decides that she has grown tired of pepperoni and olive pizza, so she no longer buys it. This is an example of what principle of demand?
A. |
substitution effect
|
B. |
|
C. |
diminishing
|
D. |
income effect
|
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