Liz admitted a pay cut in May and consequently start cooking at home more and dining out less frequently. Her adjustments provide illustrations of the: (i) Substitution effect. (ii) Income elasticity of the demands for various goods. (iii) Law of diminishing marginal utility. (iv) Principle of equivalent marginal utilities per dollar. (v) Conservation of spending on the luxury products.
Can someone please help me in finding out the accurate answer from the above options.