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12 February, 20:01

According to the substitution effect, a decrease in the price of a product leads to an increase in the quantity of the product demanded because buyers:

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  1. 12 February, 20:21
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    The correct answer is purchase more of the now relatively less expensive good.

    When a product is discounted, obviously more people will be willing to buy it then when the price was higher. If more people want to buy a product, then the demand for that product rises, and then the production of those goods is also higher.
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