How do the substitution and income effects influence purchases?Identify a good or service, such as g

How do the substitution and income effects influence purchases?Identify a good or service, such as gasoline, breakfast cereal,shoes, or pizzas. Assume there is an overall increase in the priceof the product. What happens to the quantity purchased? Whathappens to purchases of substitute products or services? Whathappens as income increases? Now consider a specific brand of the product or service youidentified, such as Shell gasoline, Rice Krispies, Nike shoes, orDomino’s pizza. Do you think the substitution effect would be thesame if the price of only that brand is raised? What about theincome effect? . . .

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