Substitution effect takes place when price of the commodity becomes:

Related MCQs

• If negative income effect is greater than positive substitution effect : the product will be
• Price effect is
• Suppose a rise in the price of peaches from Rs.5.50 to Rs. 6.50 per bushel decreases the quantity demanded from 12,500 to 11,500 bushels. The price elasticity of demand is
• Income consumption curve of an inferior commodity is
• Inferior goods are those whose income effect is:
• For a giffen good, when price falls
• The price elasticity of demand can range between
• If the price elasticity is between 0 and 1, demand is