What effect occurs when consumers shift to alternative products due to a price increase?

The substitution effect occurs when consumers respond to a price increase of a product by switching to alternative products that are perceived as substitutes. When the price of a good rises, consumers often seek more affordable alternatives that provide similar utility or satisfaction, thereby reducing their demand for the higher-priced item.

For instance, if the price of beef increases significantly, consumers might choose to purchase chicken or turkey instead, which are considered substitutes for beef. This shift in purchasing behavior illustrates the fundamental concept of the substitution effect, where changes in price lead to changes in the selection of goods. This behavior not only reflects the consumer's sensitivity to price changes but also highlights the interdependence between products in the market. The concept is crucial in understanding demand curves and market dynamics in economics.

The other terms provided relate to different economic concepts. Commodity substitution generally refers to the exchange of one commodity for another as markets fluctuate, while cross-elasticity effect deals with the responsiveness of the demand for one good when there is a change in the price of another good. The replacement effect is less commonly referred to in economic literature, often overlapping with the substitution effect but not directly pertained to price changes of the same quantity. Thus, the substitution effect accurately captures the scenario described in the question.