ECONOMICS 203 (ECONOMICS 203)

Question 1 1 / 1 point The ________________ arises when a price changes because consumers have an incentive to consume less of the good with a relatively higher price and more of the good with a relatively lower price. a)  preferences effect b)  substitution effect c)  income effect d)  backward-bending supply curve Question 2 1 / 1 point Marginal utility can: a)  increase positively, but not negatively b)  be positive or negative, but not zero c)  ...