A consumer has a fixed income and is deciding between two goods: apples and oranges. If the price of apples decreases, how does the substitution effect influence the consumer's choice between the two goods?

When the price of apples decreases, the substitution effect comes into play, which means that apples become relatively cheaper compared to oranges. This makes apples more attractive to the consumer, who may decide to buy more apples instead of oranges because they can get more fruit for their money. For example, if apples cost $1 each and oranges cost $1. 50 each, a consumer might usually buy two oranges for $3. However, if apples drop to $0.