If the price of a hamburgers increases,the substitution effect works to
A)decrease the quantity of hamburgers supplied
B)increase the number of hamburger buns demanded
C)decrease the quantity of hamburgers demanded
D)increase the number of hamburger buns supplied
E)increase the quantity of hamburgers demanded

Question

Quizplus · Accepted Answer

The substitution effect suggests that consumers will switch to substitute goods if the price of a good increases. In the case of hamburgers, if their price increases, consumers may switch to other foods or snacks instead, leading to a decrease in the quantity of hamburgers demanded. Therefore, the correct answer is C.

If the Price of a Hamburgers Increases,the Substitution Effect Works