Final answer:
The scenario where consumers choose bananas over apples as the price of apples rises is known as the substitution effect, representing the tendency to find alternatives when prices change.
Step-by-step explanation:
When apples become more expensive and consumers switch their consumption to bananas, this behavior is referred to as the substitution effect. This economic concept explains that as goods become more expensive, people will find alternatives that provide a similar level of satisfaction. The substitution effect, along with the income effect, demonstrates how a change in price can influence consumer behavior. The income effect describes how price changes affect consumers' purchasing power, or the amount of goods they can buy with their income. Both effects take place concurrently and shape the overall demand for goods within a market.
The phenomenon described in the question is referred to as the substitution effect. When the price of apples rises, more and more people choose to consume bananas instead as a substitute. This is because as the price of apples increases, bananas become relatively cheaper and more attractive to consumers. The substitution effect is one of the interlinked motivations that individuals experience when facing changes in price.