If the price of orchids falls, the substitution effect due to the price change will cause
A) an increase in the demand for orchids.
B) an increase in the demand for roses, a substitute for orchids.
C) an increase in the quantity demanded of orchids.
D) an increase in the quantity supplied of orchids.

Question

Quizplus · Accepted Answer

The substitution effect refers to consumers buying more of a good when its price falls, increasing the quantity demanded of that good.

If the Price of Orchids Falls, the Substitution Effect Due