Question

when the price of coffee increases significantly, what economic principle explains why consumers might switch to purchasing more tea? (1 point)
substitution effect demonstrates consumers switching to alternatives
law of demand explains price - quantity relationship
market equilibrium balances supply and demand
income effect shows reduced purchasing power

Explanation:

When coffee price rises, tea is a substitute. Substitution effect makes consumers shift to cheaper substitutes like tea.

Answer:

Substitution effect demonstrates consumers switching to alternatives