Jeff is a hockey player who uses hockey sticks manufactured by Teal Inc.Teal increases the price of hockey sticks, so Jeff switches to another brand offering the same quality of hockey sticks at a lower price.This change in brand is an example of the:
A)substitution effect.
B)complementary effect.
C)supply effect.
D)demand effect.
E)income effect.

Question

Quizplus · Accepted Answer

The substitution effect refers to the phenomenon where consumers switch to a similar product offered at a lower price when the price of a preferred product increases. In this case, Jeff switched to another brand offering the same quality of hockey sticks at a lower price when Teal Inc. increased the price of their hockey sticks.

Jeff Is a Hockey Player Who Uses Hockey Sticks Manufactured