When the price of a resource goes up and firms seek other suitable resources, this is called the

A) substitution in production effect.
B) substitution in demand effect.
C) elasticity effect.
D) inelasticity effect.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another more or less expensive one.

Firms

Business organizations that produce goods or offer services, typically with the aim of generating profit.

Resources

Inputs or factors that are used in the production of goods and services, such as land, labor, capital, and entrepreneurship.