Question

​________ is used to describe how changes in price affect a​ consumer's purchasing​ power, and​ ________ is used to describe how a change in price affects the quantity demanded of a good by making it more or less expensive than substitute goods.

a. the income​ effect; the substitution effect

b. the law of​ demand; the income effect

c. the substitution​ effect; the income effect

d. the substitution​ effect; the law of demand

Answer 1

d. the substitution​ effect; the law of demand

Step-by-step explanation:

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Answer 2

D. The substitution effect/ the law of demand

The substitution effect says when the price of one good goes up, consumers will replace it with a similar less expensive good (like buying generic paper towels)

The law of demand says that quantity demanded is inversley related to price, so as price goes up demand goes down.