If a tax is placed on one good and not another, the effect that causes you to buy less of the taxed good because it has become relatively more expensive is called the

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Quizplus · Accepted Answer

The effect described in the question is the substitution effect, which occurs when the price of one good changes relative to another, causing consumers to substitute the now more expensive good for a cheaper alternative. The other options (net effect, income effect, and domino effect) do not accurately describe this phenomenon.

If a Tax Is Placed on One Good and Not