If a college student stays home and watches a Netflix movie for $2 rather than going out to a $15 movie, this is an example of the

Question

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This is an example of the substitution effect, which occurs when an individual chooses a less expensive option as a substitute for a more expensive option. The individual is choosing to watch a movie on Netflix instead of going out to a theater, which results in a lower cost. The other options (utility effect, value effect, income effect) are not applicable in this scenario.

If a College Student Stays Home and Watches a Netflix