"" The ________________ arises when a price changes because consumers have an incentive to consume less of the good with a relatively higher price and more of the good with a relatively lower price.

Respuesta :

Answer:

The correct answer is "substitution effect"

Explanation:

When the price of a good or service rises, and the consumers change into a cheaper product with similar characteristics; immediately the market experiencing a decrease in sales for these changes; That phenomenon is called substitution effect.  

For Example:

When the chicken price increases, the consumers prefer to consume pork; Immediately the chicken sales decrease for this decision. That is called a substitution effect.

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