Jeff likes Pepsi and pizza. When the price of pizza rises, the substitution effect causes Pepsi to be relatively less expensive, so Jeff buys more Pepsi.
The substitution impact can also occur whilst, because of an alternate in relative fees and budget, a patron replaces one product with some other. That would suggest switching out less expensive or fairly priced items for ones that can be extra high priced.
While the rate of a product or service increases however the customer's earnings remain the same, and the substitution effect commonly kicks in. The substitution effect is most powerful for merchandise that is close substitutes. A boom in consumer spending power can offset the substitution effect.
Learn more about substitution here https://brainly.com/question/25869125
#SPJ4
