Question

The short run is:

		a time period in which at least one set of outputs has been decided upon.
		however long it takes to produce the planned output.
		three years.
		a time period in which at least one input is fixed.
		less than a year.

After a good falls in price, consumers are better off because they can buy the same amount of the good for less money, and thus have money left over for additional purchases. This fact is called:

		the income effect.
		the substitution effect.
		the wealth effect.
		the price effect.

Answer 1

Answer ;: Option D is correct. In short run at least one input or factor of production remain fixed. Itmeans that in short period where there is a beginning of the firm it consider one factorsuch as land of capital is fixed.

Answer : Option D is correct. Total price effect is sum total of substitution and income effect in an economy. It means that when price has been reduced they have been better off as there has been risen in the disposable income in an economy.As money has been left for other good purchases and this is called price effect.