lrockstedunbaileyc
Answered

Which phrase describes the substitution effect?


A.) buying cheaper alternatives when a product becomes expensive

B.)replacing existing producers in a market with new producers

C.)replacing existing products in a market with higher-quality products

D.)substituting existing technology with a new technology to produce more goods

Verified Answer :

meerkat18

The correct answer to the question that is being stated above is letter A.  buying cheaper alternatives when a product becomes expensive.

 Buying cheaper alternatives when a product becomes expensive is an example of an action which best describes the substitution effect.

I believe the answer is: A.) buying cheaper alternatives when a product becomes expensive

Substitution effect refers to a situation when a change of component on a product would influence consumers to replace that product.
Factors that could cause a substitution effect could include things such as prices, availability, changes in material, etc.