Which of the following statements is true?
A.The substitution effect always involves a change in consumption in the same direction as the change in the marginal utility.
B.The substitution effect always involves a change in consumption in the same direction as the change in price.
C.The substitution effect always involves a change in consumption in the opposite direction to the change in price.
D.The substitution effect always involves a change in consumption in the opposite direction to the change in the budget.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is true?
A.The substitution effect always involves a change in consumption in the same direction as the change in the marginal utility.
B.The substitution effect always involves a change in consumption in the same direction as the change in price.
C.The substitution effect always involves a change in consumption in the opposite direction to the change in price.
D.The substitution effect always involves a change in consumption in the opposite direction to the change in the budget.

Which of the Following Statements Is True