When the price of summer tank tops falls and you buy more because they are relatively less expensive, this is called:

51) When the price of summer tank tops falls and you buy more them because

they are relatively less expensive, this is called
a. the elasticity effect.
b. the deadweight loss effect.
c. the income effect.
d. the substitution effect.

The Law of Demand.

Substitution effect of a price change

When the price of summer tank tops falls and you buy more because they are relatively less expensive, this is called the income effect. The income effect refers to the change in the quantity of a product that a consumer purchases as a result of a change in their income or the price of the product.

To understand this concept, we need to consider the Law of Demand. According to the Law of Demand, all else being equal, when the price of a product decreases, the quantity demanded by consumers increases. This means that consumers are more likely to buy more of a product if its price falls.

In the case of summer tank tops, if the price decreases, consumers will find them relatively less expensive. As a result, they may be more willing to purchase more tank tops because their purchasing power has increased. This is known as the income effect.

In summary, when the price of summer tank tops falls and you buy more because they are relatively less expensive, it is referred to as the income effect, which occurs when changes in price or income influence consumer purchasing behavior.