What Is the Substitution Effect

question 101

Multiple Choice

What is the substitution effect?

• A)The effect that a change in income has on the demand for a substitute product.
• B)The sacrifice which has to be made when an additional quantity of one product is purchased.
• C)The substitution of one product for another as a result of a change in their relative prices.
• D)The substitution of a normal product for an inferior product as the result of an increase in income.

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