An increase in the price of a good or service encourages people to look for substitutes. A. True B. False
An increase in the price of a good or service encourages people to look for substitutes
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An increase in the price of a good or service encourages people to look for substitutes. A. True B. False
A. True
When the price of a good or service increases, consumers often seek cheaper alternatives or substitutes to avoid paying the higher price. This behavior is a fundamental principle of economics known as the substitution effect. By looking for substitutes, consumers can maintain their overall satisfaction while managing their expenses.