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A number of social psychologists have speculated on why the presence of others should lead to arousal.They have developed three explanatory theories.One is that arousal increases vigilance.Another is that arousal is distracting.Third,arousal
Substitution Effect
The substitution effect occurs when consumers replace more expensive items with less costly alternatives.
Income Effect
A change in the quantity demanded of a good or service as a result of a change in real income (purchasing power).
Inferior Good
A type of good for which demand declines as the income of individuals or the economy increases, opposite to normal goods.
Substitution Effect
The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute a cheaper good for a more expensive one.
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