Final answer:
The principle referred to in the question is substitution, which dictates that consumers will opt for less expensive alternatives when prices rise. Total utility is maximized when consumers make cost-effective choices, consistent with the law of demand's inverse relationship between price and quantity demanded.
Step-by-step explanation:
A buyer will not pay more for a particular property if he/she can buy an equally desirable one for less, according to the principle of substitution. This principle indicates that when the price of a good or service changes, consumers are motivated to consume less of what has a relatively higher price and more of what has a relatively lower price. The substitution effect is always accompanied by an income effect, meaning that both the change in consumption due to relative price changes and the change in buying power occur at the same time.
Total utility is the satisfaction derived from consumer choices, and it typically maximizes when consumers make the decision to choose goods or services that provide the most utility for their cost. The law of demand supports this, stating that there is an inverse relationship between price and quantity demanded, meaning that as price rises, the quantity demanded tends to fall, and vice versa. Thus, people look for substitutes, such as when the price of gasoline goes up and they find alternative ways of transportation.