Ask Question
12 January, 22:09

Replacing a good with a similar good because of a change in prices is an example of the:

substitution effect

supply and demand

price rationalizing

none of the above

+1
Answers (1)
  1. 12 January, 23:35
    0
    Substitution effect. When the prices go up consumers tend to change the demand of the product. There are two effects involved in this process: price effect and substitution effect. Substitution effect is when consumers change their preferences to a similar product but with lower price.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Replacing a good with a similar good because of a change in prices is an example of the: substitution effect supply and demand price ...” in 📙 Social Studies 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