select the correct answer.\nwhich phrase describes the substitution effect?\na. buying cheaper alternatives…

select the correct answer.\nwhich phrase describes the substitution effect?\na. buying cheaper alternatives when a product becomes expensive\nb. replacing existing producers in a market with new producers\nc. replacing existing products in a market with higher - quality products\nd. substituting existing technology with a new technology to produce more goods

select the correct answer.\nwhich phrase describes the substitution effect?\na. buying cheaper alternatives when a product becomes expensive\nb. replacing existing producers in a market with new producers\nc. replacing existing products in a market with higher - quality products\nd. substituting existing technology with a new technology to produce more goods

Answer

Answer:

A. buying cheaper alternatives when a product becomes expensive

Brief Explanations:

The substitution effect in economics (a subfield of Business) refers to consumers' tendency to switch to cheaper substitute goods when the price of a product rises. Option A matches this definition. Option B is about market producers' replacement, not consumer behavior. Option C focuses on product quality - based replacement, not price - driven substitution. Option D is about production technology substitution, not consumer - side substitution effect.