The _____ effect is the change in consumption resulting from a change in the relative prices of two goods.
A) substitution
B) income
C) relative utility
D) Hawthorne

Question

Quizplus · Accepted Answer

The substitution effect occurs when consumers react to an increase in a good's price by consuming less of that good and more of a substitute good, reflecting a change in consumption due to a change in the relative prices of goods.

The _____ Effect Is the Change in Consumption Resulting from a Change