What Is the Substitution Effect

Multiple Choice

What is the substitution effect?

A) The effect that a change in income has on the demand for a substitute product.
B) The sacrifice which has to be made when an additional quantity of one product is purchased.
C) The substitution of one product for another as a result of a change in their relative prices.
D) The substitution of a normal product for an inferior product as the result of an increase in income.