Question

more willing to substitute the commodity for other commodities is ______
a) income effect
b) substitution effect
c)no effect
d) cost effect​

Answer 1

Answer:

I think !

B). (Substitution Effect) is correct answer.......

Explanation:

Thanks....... for points ✌

Answer 2

More willingness to substitute the commodity for other commodities is known as the substitution effect. (Option B)

• The substitution impact is the decline in sales of a product due to customers moving to cheaper alternatives when its price increases and the increase in sales of a product due to consumers switching to pricier alternatives when its price decreases.
• For example; If beef prices rise, many consumers will eat more chicken.
• More of the substitute goods are as follows;

1. McDonald's — KFC and Burger King.
2. Coke — Pepsi.
3. iPhone — Samsung Galaxy.
4. Pizza Hut — Dominoes.

• Consumers benefit from the substitution effect since it implies they can continue to afford a specific product even if prices rise or their wages fall.