Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Get quick and reliable solutions to your questions from a community of experienced experts on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

The inverse relationship between price and quantity demanded is called the

A. income effect
B. law of demand
C. law of supply
D. substitution effect

Sagot :

GinnyAnswer

Final answer:

The substitution effect explains the inverse relationship between price and quantity demanded in economics.


Explanation:

The inverse relationship between price and quantity demanded is called the substitution effect. This effect occurs when a change in the price of a good leads to consumers substituting it for other goods. In economics, the substitution effect is essential in understanding how consumers react to price changes and make decisions.

For example:

  1. When the price of coffee rises, consumers might choose to buy more tea instead.
  2. Conversely, if the price of tea decreases, consumers may opt to buy more tea and less coffee.

Learn more about Substitution effect here:

https://brainly.com/question/43279033


We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.