The substitution effect of a price decrease for a good causes an increase in the consumption of the good, regardless of whether the good is normal or inferior.

Substitution Effect

The change in consumption of goods that occurs when a price change for one good makes another good more or less attractive as a substitute.

Price Decrease

A reduction in the cost of goods or services, often resulting from factors like increased competition, lower production costs, or decreased demand.

Consumption

The use of goods and services by households.