If the price of pork rinds falls,then the substitution effect due to the price change will cause
A)an increase in the demand for pork rinds.
B)an increase in the demand for corn chips,a substitute for pork rinds.
C)an increase in the quantity of pork rinds demanded.
D)a decrease in the quantity of pork rinds demanded.

Question

Quizplus · Accepted Answer

The substitution effect refers to consumers' tendency to substitute cheaper goods for more expensive ones. When the price of pork rinds falls, they become relatively cheaper compared to their substitutes (like corn chips), leading consumers to buy more pork rinds instead of the substitutes. This results in an increase in the quantity of pork rinds demanded, not a change in demand itself.

If the Price of Pork Rinds Falls,then the Substitution Effect