When price of a pizza decreases from $12 to 10, it is definitely the case that the: A. Income effect means people buy less pizza. B. Substitution effect means people buy more pizza. C. Quantity demanded of pizza will not change. D. None of the above.
When price of a pizza decreases from $12 to 10, it is definitely the case that the: A. Income effect means people buy less pizza. B. Substitution effect means people buy more pizza. C. Quantity demanded of pizza will not change. D. None of the above.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 13SQ
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When price of a pizza decreases from $12 to 10, it is definitely the case that the:
A. Income effect means people buy less pizza.
B. Substitution effect means people buy more pizza.
C. Quantity
D. None of the above.
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