Barbara purchases only two goods, salads, and notepads. Both are normal goods for Barbara. Suppose the price of salad decreases. Barbara’s consumption of notepads will most likely:__________.a. be unchanged as the two goods are not substitutes.b. increase due to the substitution effect.c. decrease since she will spend more of her budget on saladsd. increase due to the income effect.

Respuesta :

Like Haley up here did^^^^^^^^

Answer:

B

Explanation:

Salads and notepads are the only two products Barbara buys. For Barbara, both items are standard fare, let's say the cost of salad drops. The substitution effect will probably cause Barbara to use more notepads.

What is the substitution effect?

The substitution effect is defined as the decrease in sales of a commodity that results from customers switching to less expensive substitutes when the price of the product increases.

In the given case, Barbara only purchases two items, salads and notepads. If the price of the salad decreases, Barbara would consider both dishes to be standard fare. Barbara's use of notepads will likely increase as a result of the substitution effect.

Therefore, option B is correct.

To learn more about the substitution effect, refer to:

https://brainly.com/question/22079450

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