What is the term for the substitution of one product for another as a result of a change in their relative prices?
A)Income effect.
B)Substitution effect.
C)Market effect.
D)Law of demand.

Question

Quizplus · Accepted Answer

The term for the substitution of one product for another as a result of a change in their relative prices is the substitution effect. This effect occurs when the price of one product increases, prompting consumers to switch to a similar, lower-priced product instead.

What Is the Term for the Substitution of One Product