The substitution effect of a price change is described by which of the following statements?
A.When the price of canning jars falls, consumers have more real income with the same nominal income and will buy more canning jars.
B.When the price of canning jars falls, consumers will substitute these lower-priced canning jars for higher-priced goods.
C.The substitution effect is the change in the number of canning jars purchased when the price of spatulas changes.
D.The substitution effect shows how a change in income will affect the quantity of a good purchased.

Question

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The Answer of The substitution effect of a price change is described by which of the following statements?
A.When the price of canning jars falls, consumers have more real income with the same nominal income and will buy more canning jars.
B.When the price of canning jars falls, consumers will substitute these lower-priced canning jars for higher-priced goods.
C.The substitution effect is the change in the number of canning jars purchased when the price of spatulas changes.
D.The substitution effect shows how a change in income will affect the quantity of a good purchased.

The Substitution Effect of a Price Change Is Described by Which