Ask Question
BusinessBusiness
4 January, 14:20

According to the substitution effect, a decrease in the price of a product leads to an increase in the quantity of the product demanded because buyers:

+2
Answers (1)
  1. 4 January, 16:09
    0
    The correct answer is purchase more of the now relatively less expensive good.

    When a product is discounted, obviously more people will be willing to buy it then when the price was higher. If more people want to buy a product, then the demand for that product rises, and then the production of those goods is also higher.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “According to the substitution effect, a decrease in the price of a product leads to an increase in the quantity of the product demanded ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
According to the principle of equality, a society that preferred women for the respected and highly paid position of financial advisor would be justified in doing so if it could be proven that women by nature were more talented in such matters than
Answers (1)
Chloe is the billing and accounting department manager in a large organization. The CEO is shifting the tall hierarchal structure to reduce the number of middle managers. Chloe is now the team leader for 15 people instead of the manager of 5.
Answers (1)
U. s lifestyles shifts have expanded which of the following careers?
Answers (1)
Monetary policy: a. must be described in terms of money-supply targets. b. must be described in terms of interest-rate targets. c. can be described either in terms of the money supply or in terms of the interest rate. d.
Answers (1)
There are many perfumes on the market, but Demeter, a superior brand of perfume, has memorable scents that leads to emotional ties.
Answers (1)
New Questions in Business
Which of the following is an asset use transaction? a. Purchased machine for cash b. Recorded insurance expense at the end of the period c. Invested cash in an interest earning account d. Accrued salary expense at the end of the period
Answers (1)
An investigator proposes to study a marketed product sold to treat high blood pressure in individuals over age 12 using a liquid formulation for children under age 12.
Answers (1)
The Tenant is responsible for insuring the Property for damage or loss to the structure, mechanical or improvements to the building of the Property for the benefit of the Parties.
Answers (1)
Suppose you want to introduce architecture-centric practices to your organization. Your management open to the idea, but wants to know the ROI for doing so. How would you respond?
Answers (1)
Suppose the standard deviation of the losses had been $3000 instead of $1000. What would the larger standard deviation do to the width of the confidence interval (assuming the same level of confidence) ?
Answers (1)
Home » Business » According to the substitution effect, a decrease in the price of a product leads to an increase in the quantity of the product demanded because buyers:
Sign Up Forgot Password?