A fall in the price of 7up causes a household to shift its purchasing pattern away from sprite and toward 7up is the substitution effect of a price change.
What is the Substitution Effect?
The term "substitution impact" describes the change in customer preferences for a good as a result of a change in the relative pricing of the good in comparison to other substitutes. A good, for instance, becomes more expensive in comparison to other products on the market as its price increases.
What happens to the substitution effect when the price increases?
The replacement effect occurs when people switch from purchasing less expensive goods to more expensive ones as prices increase or when their financial situation gets better, and vice versa.
Learn more about the Substitution Effect: https://brainly.com/question/22079450
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