I’m working on a business discussion question and need support to help me learn.
When the price of a good changes (decreases), it becomes less expensive which allows consumers to increase their satisfaction (purchase) for that good. Just the opposite happens when the price of a good changes increases. When the price of a good changes (increases), it become more expensive which changes the consumer satisfaction for that good causing the consumer to seek a substitution. This concept is the substitution effect of the price change. In this discussion forum, identify a consumer product that has decreased in price and discuss the increase in consumer demand for this product. What have consumer substituted because of this decrease in price.
TEXTBOOK INFO:
Managerial Economics: Applications, Strategy, and Tactics (14th Edition)
James McGuigan, R. Charles Moyer, & Frederick Harris
Cengage Learning, © 2017, 2014
ISBN-13: 978-1-305-50638-1
ISBN-10: 1-305-50638-3
Links to refer:
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