Read the passage and then answer the question: A business has been researching sales data on its latest product. The data
show that the product's sales dropped soon after its price rose earlier in the
year. The business decides to lower the price, hoping to attract more
customers.
The situation described in the passage most reflects the impact of which
concept?
A. The income effect
B. The law of demand
C. The law of supply
ThD. The substitution effect
SUBMIT