What does a decrease in the price of a product typically lead to regarding substitutes?

A decrease in the price of a product usually leads to a decreased attractiveness of substitutes. When the price of a particular product falls, it becomes more appealing to consumers compared to its substitutes, which are alternatives that could fulfill the same need or desire. As a result, individuals are likely to shift their consumption towards the cheaper product, as it provides the same utility or satisfaction at a lower cost. This phenomenon reflects the principle of substitution in economics, where consumers tend to favor less expensive options when prices change.

The other potential answers do not align with this economic principle. Increased purchasing of substitutes would suggest that consumers are opting for alternatives rather than the cheaper product, which contradicts the behavior expected when one product's price decreases. No impact on substitutes implies that the change in price has no effect on buyers' preferences, which is also not accurate in typical market behavior. Lastly, an increase in product production does not directly relate to consumer preferences regarding substitutes; while it may occur as a result of increased demand due to lower prices, it is not the immediate effect concerning substitute attractiveness.