Asked by
Angie soberal
on Oct 09, 2024
Verified
When the price of Nike soccer balls fell,Ronaldo purchased more Nike soccer balls and fewer Adidas soccer balls.Which of the following best explains Ronaldo's decision to buy more Nike soccer balls?
A) The substitution effect.
B) The income effect.
C) An increase in the demand for Nike soccer balls.
D) The price effect.
Substitution Effect
A principle describing how changes in relative prices can lead consumers to substitute one good for another more or less expensive one, affecting demand levels.
Nike Soccer Balls
These are soccer balls produced and branded by Nike, a multinational corporation known for its wide range of sports equipment, apparel, and accessories.
Adidas Soccer Balls
Branded sports equipment produced by Adidas, specifically designed for playing soccer.
- Master the correlation between price modifications and the quantity of goods consumers demand, underpinned by the substitution and income effects.
Verified Answer
SJ
Learning Objectives
- Master the correlation between price modifications and the quantity of goods consumers demand, underpinned by the substitution and income effects.