Which of the following explains why consumers purchase less of a good or service when its price increases?

Question

Quizplus · Accepted Answer

Both limited income and the availability of substitutes explain why consumers purchase less of a good or service when its price increases. Limited income restricts how much consumers can spend, leading them to cut back on purchases as prices rise. The availability of substitutes offers consumers alternatives, making them more likely to switch to cheaper options when prices increase.

Which of the Following Explains Why Consumers Purchase Less of a Good