For normal goods like cola and pizza,what is a likely result of the substitution effect when the price of pizza falls
A)The consumer feels richer, so he buys more cola.
B)The consumer feels richer, so he buys less cola.
C)Cola becomes relatively more expensive, so the consumer buys less cola.
D)Cola becomes relatively less expensive, so the consumer buys less cola.

Question

Quizplus · Accepted Answer

When the price of pizza falls, pizza becomes cheaper relative to cola, leading the consumer to substitute pizza for cola, thus buying less cola.

For Normal Goods Like Cola and Pizza,what Is a Likely