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As the price of a good or service increases, consumers will purchase a lower quantity of that good or service due, in part, to the fact that consumers cannot afford the same quantity of a good or service at a higher price. This concept is known as the _____

law of demand
substitution effect
ceteris paribus effect income effect

Respuesta :

Tundexi

The concept is known as Law of demand.

Law is demand states "the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded"

  • Also, the purchasing power of a consumer can change because of Change in Income, but here the price of goods increase, so we are dealing with Law of demand

In conclusion, the consumer will buy lower quantity of good if the income level remain the same because of the high level of price. Thus, the concept is about Law of demand.

Learn more about Law of demand here

brainly.com/question/5530340

Answer:

Income effect

Explanation:

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