The Substitution Effect Influences Food Purchases Because When the Price

Multiple Choice

The substitution effect influences food purchases because when the price of a certain food rises, other things remaining the same, _______ Consumers _______

A) its relative price does not change because most likely the prices of all other foods will also rise; continue to purchase all foods, but in smaller quantities
B) its relative price rises; purchase more of a different food that is less expensive
C) the relative price of all food rises; continue to purchase all foods, but in smaller quantities
D) its relative price rises; purchase less of all foods
E) the relative price of all food rises; purchase less of the food that has experienced the price increase and more of all other foods