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)

Question

Responses

law of demand
law of demand

income effect
income effect

substitution effect
substitution effect

ceteris paribus effect

Answer 1

This concept is known as the income effect.