The substitution effect always entails a change in consumption in the _____ direction as (of)the change in _____.
A)same;marginal utility
B)same;price
C)opposite;price
D)opposite;the budget

Question

Quizplus · Accepted Answer

The substitution effect occurs when a change in the price of a good causes consumers to substitute that good with another, leading to a change in consumption in the opposite direction of the price change.

The Substitution Effect Always Entails a Change in Consumption in the _____