According to the substitution effect along an indifference curve, when the relative price of a good falls, the consumer ________ substitutes ________ of that good for the other good.
A) always; more
B) always; less
C) sometimes; more
D) sometimes; less

Question

Quizplus · Accepted Answer

The substitution effect states that when the relative price of a good falls, the consumer will always substitute more of that good for the other good, as the good has become relatively cheaper.

According to the Substitution Effect Along an Indifference Curve, When