When you purchase the lower-priced store brand bread instead of the more expensive name brand, you are experiencing
A) the substitution effect.
B) the income effect.
C) a fall in total utility.
D) diminishing marginal product.

Question

Quizplus · Accepted Answer

When choosing the lower-priced store brand bread over the more expensive name brand, you are experiencing the substitution effect. This means that you are substituting the more expensive option for the cheaper option due to the difference in price. This is a common behavior in consumer decision-making.

When You Purchase the Lower-Priced Store Brand Bread Instead of the More