Problem:
Which of the following scenarios best exemplifies the notion of the substitution effect? a. This past weekend you go to Publix to buy soda. As you walk down the aisle, you notice that a six pack of coke is priced at $3.89 and Pepsi is marked at $2.50. Ultimately, you buy Pepsi. b. This past weekend you go to the mall to buy clothes. Your favorite store is the Gap. Unfortunately, the Gap is not offering a sale and so you walk to the other end of the mall to Forever 21. They aren't offering a sale either. You decide to buy from Forever 21 because you like their clothes better anyway. c. This past weekend you go to the store to buy an XBOX 360 when suddenly a game for the PS2 catches your eye. You decide to spend money on a couple of games for the system you already own rather than buying a brand-new system. d. none of the choices illustrate the substitution effect.