If the price of paint increases,the substitution effect will cause
A)people to paint their homes more often
B)people to use more paint than they did before
C)the quantity of paint demanded to increase
D)the quantity of paint supplied to decrease
E)people to use less paint

Question

Quizplus · Accepted Answer

When the price of paint increases, consumers may choose to purchase alternatives such as wallpaper or wall decals instead of using paint. This substitution effect leads to a decrease in the quantity of paint demanded and a shift to using less paint overall.

If the Price of Paint Increases,the Substitution Effect Will Cause