Answer:
The Substitution Effect
Explanation:
Substitute goods are those goods which can be used as perfect replacement for one another to satisfy a want.
There is a direct relationship between price of a good and the demand of it's substitute. So when price of a good falls, the quantity demanded of it's substitute falls and vice versa keeping factors affecting demand other than price as constant.
Similarly, in the given case, Nike and Adidas soccer balls are perfect substitute products. So when price of Nike fell, its quantity demanded increased while the quantity demand for Adidas soccer balls reduced.
Answer:
His contract
Explanation:
He bought fewer adidas balls because buying an adidas ball would get him in trouble with Nike and violate his billion dollar lifetime sponsorship deal with Nike.
