... effect tends to make the consumer buy more pizza and morePepsi. Yet, at the same time, consumption of Pepsi has become less expensive rela-tive to consumption of pizza. This substitution effect tends ... indifference curve. He is now better off than he was. As long as consump-tion in both periods consists of normal goods, he tends to want to use this increasein well-being to enjoy higher consumption ... the law of demand andbuy more of a good when the price rises. To see how this can happen, consider Fig-ure 2 1-1 2. In this example, the consumer buys two goods—meat and potatoes. Ini-tially,...