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Question
According to the substitution effect, if the price of a product goes down
A) the consumer will buy more of the good at the lower price than at a higher price, creating a downward sloping demand curve.
B) the consumer will buy more of the good at a lower price than at a higher price, creating a horizontal demand curve.
C) the consumer will not change the level of purchases of the good when the price changes, making the demand curve a vertical line.
D) the real income of the consumer will increase, causing the consumer to want to buy more of the good, creating a downward sloping demand curve.
Answer
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