If the price of 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.

Question

Quizplus · Accepted Answer

The substitution effect suggests that as the price of hamburgers increases, consumers will be more likely to substitute hamburgers for a cheaper option, such as hot dogs, chicken sandwiches, or vegetarian options. Therefore, the quantity of hamburgers demanded would decrease. The other choices in the question do not accurately reflect the substitution effect.

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