Answer:
The substitution effect
Explanation:
Substitution effect occurs when consumers change the products they buy when prices increase. Substitutes are products that can be used interchangeably.
So when the price of a particular good increases consumers tend to look for an alternative (substitute) that will serve the same purpose.
In the given scenario Professor Groth has a favourite cereal, Cinnamon Toast Crunch.
As the price of this cereal increases the Professor is looking at replacing it with other cereals. This is the substitution effect.
