In 2007 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused

Name: In 2007 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused
Brand: Quizplus
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The substitution effect occurs when a price decrease makes a product relatively cheaper compared to its substitutes, leading consumers to switch from the substitutes (like Adidas shoes) to the cheaper product (Nike shoes).

In 2007 Nike Reduced the Price of Its Running Shoes