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The Substitution Effect of a Price Change for Product X

Question 38

Multiple Choice

The substitution effect of a price change for product X is the change in consumption of X associated with a change in


A) the price of X, with the level of utility held constant.
B) the price of X, with the level of real income not considered.
C) the price of X, with the prices of other goods changing by the same percentage as that for product X.
D) income, with prices of other goods held constant.

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