Ask Question
4 February, 10:45

When someone chooses to purchase one item over another because it is cheaper, this is known as the

A. Substitution Effect.

B. Income Effect.

C. Budget Effect.

D. Version Effect.

+1
Answers (2)
  1. 4 February, 13:47
    0
    C-The budget effect.
  2. 4 February, 14:23
    0
    The answer would be Substitution Effect I think. The idea that as prices rise (or incomes decrease) consumers will replace more expensive items with less costly alternatives.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “When someone chooses to purchase one item over another because it is cheaper, this is known as the A. Substitution Effect. B. Income ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers