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4 November, 00:28

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.

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Answers (2)
  1. 4 November, 00:43
    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.
  2. 4 November, 00:50
    0
    C-The budget effect.
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