If the price of hamburger increases, the substitution effect works to
A) decrease the quantity of hamburger supplied.
B) increase the number of hamburger buns demanded.
C) decrease the quantity of hamburger demanded.
D) increase the number of hamburger buns supplied.

Question

Quizplus · Accepted Answer

The substitution effect implies that as the price of hamburgers increases, consumers will substitute away from hamburgers to other goods, leading to a decrease in the quantity of hamburgers demanded.

If the Price of Hamburger Increases, the Substitution Effect Works