When prices rise for a particular product consumers will purchase lower-priced similar items. income effect substitute effect law of demand diminishing marginal utility

## Step 1<br />The 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.<br /><br />## Step 2<br />The 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.<br /><br />## Step 3<br />The 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.<br /><br />## Step 4<br />Diminishing 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.<br /><br />## Step 5<br />The 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.