Q343
The 'substitution effect' takes place due to change in
A.
Income of the consumers
B.
Prices of the commodity
C.
Relative prices of the commodities
AnswerD.
All of the above
Answer: Option C
Solution
Answer: Option C
Solution:
The 'substitution effect' takes place due to change in Relative prices of the commodities. The substitution effect refers to the change in demand for a good as a result of a change in the relative price of the good in terms of other goods.