When the price of good changes the substitution effect

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Reference no: EM13897166

When the price of a good changes, the substitution effect occurs because:

a. consumers have an incentive to substitute irrational behavior for rational behavior.

b. the consumers’ real income measured in terms of that good changes.

c. the relative price of that good changes compared to other goods in the consumption bundle.

d. the marginal utility of that good decreases.

e. the total utility of that good decreases.

Reference no: EM13897166

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