Question

The typical response to a lower price for a good is that a person chooses to consume more of it. This is because of ___________. Select the correct answer below: the income effect only the substitution effect only neither the income nor the substitution effects both the substitution and income effects

Answer 1

Answer:

the substitution effect only

Explanation:

The Substitution effect occurs when there is an increase in the level of the price so the people goes towards the cheaper products who are best alternative due to which the demand of that goods would drop

Here in the question it is mentioned that if the good contains a less price so would consumer more due to the Substitution effect only

Hence, the same is to be considered