Q. The substitution effect works to encourage a consumer to purchase more of as product when the price of tha good is falling because

  • (A) The consumer's real income has increased
  • (B) The consumer's real income has decreased
  • (C) The product is now less expensive than before
  • (D) Other products are now less expensive than before
πŸ’¬ Discuss
βœ… Correct Answer: (C) The product is now less expensive than before

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