Given the journal entries below, write an explanation of the event that created the transaction.
Definitions:
Substitution Effect
The change in consumption patterns due to a change in relative prices, leading consumers to substitute more expensive items with cheaper alternatives.
Income Effect
The link between alterations in income for a person or the economy and the subsequent shift in demanded quantity of a product or service.
Indifference Curves
A graphical representation of different combinations of two goods or services that give a consumer equal satisfaction and utility.
Downsloping
Describing a curve or trend that decreases in value as it moves rightward on a graph, typically referring to demand curves where price and quantity demanded are inversely related.
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