Problemas
When prices rise for a particular product consumers will purchase lower-priced similar items. income effect substitute effect law of demand diminishing marginal utility
Roztwór
Susana
veterano · Tutor durante 10 años
4.7
(374 Votos)
Respuesta
B. Substitute effect
Explicación
## Step 1The problem is asking us to identify the economic principle that explains the behavior of consumers when the price of a particular product rises. The options provided are income effect, substitute effect, law of demand, and diminishing marginal utility.## Step 2The income effect refers to the change in the quantity demanded of a good or service due to a change in the consumer's income. This doesn't apply to this situation because the problem is not about a change in income but about a change in the price of a product.## Step 3The law of demand states that, all else being equal, as the price of a good or service increases, consumer demand for the good or service will decrease. This is not the correct answer because the problem is not about the overall demand for a product but about the demand for a specific product.## Step 4Diminishing marginal utility refers to the decrease in satisfaction or utility that a consumer experiences as they consume more units of a good or service. This doesn't apply to this situation because the problem is not about the satisfaction or utility of consuming more units of a good or service.## Step 5The substitute effect refers to the change in the quantity demanded of a good or service due to a change in the price of a substitute good or service. In this case, when the price of a particular product rises, consumers will purchase lower-priced similar items. This is the correct answer because it explains the behavior of consumers when the price of a product rises.