An elimination heuristic makes the choice on the basis of all the categories in which the events differ.
Indicate whether the statement is true or false
Question 2
When the price of a good changes, the substitution effect occurs because:
a. the consumers' real income measured in terms of that good changes.
b. the relative price of that good changes compared to other goods in the consumption bundle.
c. the total utility of that good decreases.
d. the marginal utility of that good decreases.
e. consumers have an incentive to substitute irrational behavior for rational behavior.
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