After a good falls in price, consumers will tend to buy more of the good that has become cheaper and less of those goods that are now relatively more expensive. This fact is called:

A) the income effect.
B) the substitution effect.
C) the wealth effect.
D) the price effect.

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less expensive alternatives due to a change in relative prices.

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.