The substitution effect can be measured holding ________ constant.
A) income
B) utility
C) the price of one good
D) the price of all goods

Name: The substitution effect can be measured holding ________ constant. A) income B) utility C) the price of one good D) the price of all goods
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Question

Quizplus · Accepted Answer

The substitution effect measures how the quantity demanded of a good changes in response to a price change, holding utility constant. This isolates the effect of the price change from the income effect.

The Substitution Effect Can Be Measured Holding ________ Constant