Post Utme Babcock University 2022 Economics Question 16

Practice objective / multiple choice question 16 from the 2022 Post Utme Babcock University Economics examination.

Post Utme Babcock University 2022 Economics Objective / Multiple Choice
Question 16 POST_UTME_BABCOCK_UNIVERSITY • 2022 • ECONOMICS • objective

An increase in the price of a commodity leads to a decrease in its demand. Which of the following is a possible explanation for this phenomenon?

Answer Options

A. Income effect
Correct Answer B. Substitution effect
C. Cross-price effect
D. Income elasticity of demand
Correct Answer
B
Correct Option:
Substitution effect

About This Question

This is Post Utme Babcock University 2022 Economics Question 16. It is one of the objective questions from the 2022 Post Utme Babcock University Economics examination.

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