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a. firms tend to produce less of a good that is more costly to produce.
b. the substitution effect always leads consumers to substitute higher quality goods for lower quality goods.
c. the substitution effect always causes consumers try to substitute away from the consumption of a commodity when the commodity's price rises.
d. an increase in price reduces real income and the income effect always causes consumers to reduce consumption of a commodity when income falls.
Answer option ________________C
My answer is an option (C)
c. the substitution effect always causes consumers try to substitute away from the consumption of a commodity when the commodity's price rises.
The answer is : Option ( C ) ,,,,,,,,,,
c. the substitution effect always causes consumers try to substitute away from the consumption of a commodity when theCOMMODITY'S PRICE
rises.
I appreciated the previous answers
the answer c option .......................................................................................
Ans. Option C is the right choice>>>>>>>>>>>>
C......................................................................................
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