When the price of DVDs falls relative to movie and restaurant prices, and consumers buy more of the DVDs, economists call this
A) indifference.
B) satisfaction.
C) marginalization.
D) substitution.

Question

Quizplus · Accepted Answer

This phenomenon is called substitution, as consumers are choosing to substitute DVDs for other leisure activities like going to the movies or eating out due to the relative decrease in price.

When the Price of DVDs Falls Relative to Movie and Restaurant