Question 12 of 22 Map pling People buy more of a good when the price falls and t

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Question 12 of 22 Map pling People buy more of a good when the price falls and there are several theoretical explanations for this behavior. From the list below, match the explanation for why people buy more at lower prices with the proper term. The Total Effect The Substitution Effect The Income Effect Increases in quantity demanded ncrease in quantity demanded that are attributable to changes in attributable the combination of the purchasing power as the price of income and substitution effect a good falls. Increases in quantity demanded that are attributable to the good becoming cheaper relative to other goods O Previous ® Give Up & View solution Check Answer Next H Ext Hint

Explanation / Answer

Substitution effect - Increases in quantity demanded that are attributable to the good becoming cheaper relative to other goods

Income Effect - Increases in quantity demanded that are attributable to changes in purchasing power as the price of a good falls

Total Effect - Increase in quantity demanded attributable to the combination of the income and substitution effect.

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