The 'substitution effect' takes place due to change in:

CA Foundation · Business Economics · MTP · January 2026
The 'substitution effect' takes place due to change in:
(A) A. Income of the consumer
(B) B. Prices of the commodity
(C) C. Relative prices of the commodities
(D) D. All of the above

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Relative prices of the commodities

Topics: Theory of Demand and Supply

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