Suppose you drink more tea because the price of coffee has increased.Which of the following best explains your action?

A) Positive relation between money income and demand
B) Inverse relation between price and quantity supplied
C) Substitution effect of a price change
D) Income effect of a price change
E) Positive relation between price and quantity demanded

Substitution Effect

The Substitution Effect refers to changes in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with less costly alternatives.

Tea

A beverage made by steeping processed leaves, buds, or twigs of the tea plant in hot water, enjoyed globally for its aromatic flavors.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.