When product prices change, consumers are inclined to purchase larger amounts of the now cheaper products and less of the now dearer products.This describes:

Question

Quizplus · Accepted Answer

The situation described in the question refers to the substitution effect, which is the change in consumption patterns resulting from a change in the relative prices of goods. As the price of one good decreases relative to others, consumers tend to substitute it for more expensive alternatives, resulting in a shift in their consumption.

When Product Prices Change, Consumers Are Inclined to Purchase Larger