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Which phrase describes the substitution effect?

A.) buying cheaper alternatives when a product becomes expensive
B.)replacing existing producers in a market with new producers
C.)replacing existing products in a market with higher-quality products
D.)substituting existing technology with a new technology to produce more goods

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meerkat18
The correct answer to the question that is being stated above is letter A.  buying cheaper alternatives when a product becomes expensive.

 Buying cheaper alternatives when a product becomes expensive is an example of an action which best describes the substitution effect.
I believe the answer is: A.) buying cheaper alternatives when a product becomes expensive

Substitution effect refers to a situation when a change of component on a product would influence consumers to replace that product.
Factors that could cause a substitution effect could include things such as prices, availability, changes in material, etc.

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