Final answer:
The substitution effect for rice upon an increase in its price will be negative, as consumers will buy less rice and look for cheaper substitutes. This effect is influenced by factors like taste preferences, population growth, income levels, and the prices of substitutes and complements.
Step-by-step explanation:
When the price of rice increases, the substitution effect for rice will be negative. This means that consumers tend to buy less rice because its relative price has increased, and instead they substitute it for other goods that have become relatively cheaper. This response aligns with the typical behavior seen when there is a price change; a higher price reduces the quantity demanded for that particular good, and consumers shift their consumption towards goods that are now comparatively less expensive.
Several factors can influence consumer behavior in response to price changes, such as a taste shift to greater popularity of the good, if the population likely to buy increases, when income rises for normal goods, or if the price of substitutes rises making the original good relatively cheaper again. Similarly, if the price of complements falls, this might increase the demand for the original good, potentially offsetting the substitution effect to some degree.