The substitution effect of a price change refers to: A) the movement along the d

Question

The substitution effect of a price change refers to:
A) the movement along the demand curve due to a change in purchasing power brought about by the
price change.
B) the shift of a demand curve when the price of a substitute good changes.
C) the change in quantity demanded that results from a change in price making a good more or less
expensive relative to other goods that are substitutes.
D) the shift in the demand curve due to a change in purchasing power brought about by the price
change.
E) both A) and C) above.

Explanation / Answer

E

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