As a result of a decrease in the price of a hamburger, consumers buy more hamburgers and fewer frankfurters.This is an illustration of:

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This situation is an example of the substitution effect, which occurs when a decrease in the price of one good leads consumers to substitute it for a similar good that now seems relatively more expensive. In this case, the decrease in hamburger prices leads consumers to switch from buying more expensive frankfurters to buying more hamburgers. The income effect typically refers to changes in purchasing power resulting from changes in income, while changing tastes and preferences typically involve more fundamental shifts in consumer preferences beyond just price changes. Consumer sovereignty refers to the idea that consumers ultimately determine what goods and services are produced and sold in a market economy, but it is not directly relevant to this particular scenario.

As a Result of a Decrease in the Price of a Hamburger