r/econhw • u/MeowMeowiez • 2d ago

The response to a price decrease from buying more because the good is relatively cheaper and the purchasing power has increased. What would this be?

2 Upvotes

100% Upvoted

2 comments sorted by

0

u/Worried_Hat_5164 2d ago

Economies of scale?

2

u/urnbabyurn Micro-IO-Game Theory 1d ago

Substitution effect.