As the price of a good or service increases, consumers will purchase a lower quantity of that good or service due, in part, to the fact that consumers cannot afford the same quantity of a good or service at a higher price. This concept is known as the _____.(1 point)

Responses

inflation
substitution effect
ceteris paribus effect
income effect

User Icon for Bot GPT 4-o mini Bot GPT 4-o mini answered
26 days ago

This concept is known as the **income effect**.