When the price of orange juice increases, consumers may switch to apple juice or tomato juice. What is this switch a result of?
A) the complement effect
B) the price effect
C) the substitution effect
D) the income effect

Question

Quizplus · Accepted Answer

The switch from orange juice to apple juice or tomato juice is a result of the substitution effect, where consumers substitute a similar and lower-priced product for a more expensive one.

When the Price of Orange Juice Increases, Consumers May Switch