The substitution effect of a price change is described by which of the following statements?
A) The substitution effect is the relative change in the amount of a good consumed
when the price of another good changes.
B) When the price of a good falls, consumers have more real income with the same
nominal income and will now buy more of the good.
C) The substitution effect shows how a change in income will affect the quantity of a
D) When the price of a good falls, consumers will now substitute this lower-priced
good for relatively higher-priced goods.