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suppose the price of a bmw falls. the substitution effect means bmws ar…

Question

suppose the price of a bmw falls. the substitution effect means bmws are now relatively expensive than they were before in relation to other cars, and consumers will buy bmws.

Explanation:

Brief Explanations

When the price of a BMW falls, according to the substitution - effect in economics, it becomes relatively cheaper compared to other cars. Consumers will substitute other cars with BMWs and thus buy more BMWs.

Answer:

less; more