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When the price of a good rises, consumers will stop buying the more expensive goods and switch to substitutes. this behavior is explained by a. income effect. b. substitution ef…

When the price of a good rises, consumers will stop buying the more expensive goods and switch to substitutes. this behavior is explained by a. income effect. b. substitution ef…
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when the price of a good rises, consumers will stop buying the more expensive goods and switch to substitutes. this behavior is explained by a. income effect. b. substitution effect. c. purchasing power effect. d. the demand effect.

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User Saqib Amin
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1 Answer

5 votes
Purchasing power effect

NOTE THIS!!
ANY EFFECT OTHER THAN PURCHASING EFFECT ARE AFFECTED BY NON PRICE FACTORS.
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User Pablosproject
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