substitution effect
noun[S]
ECONOMICS,COMMERCEukustheeffectof achangein thepriceof aproductorservice, whichencouragescustomerstobuyanotherproductor use anotherserviceinstead
Examplesofsubstitution effect
substitution effect
Some economists predict that asubstitutioneffectwill spur demand for alternate energy sources, such as coal or liquefied natural gas.
From
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.To measure the effect, the income elasticity of the good being taxed as well as the incomesubstitutioneffectmust be considered.
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This example is from Wikipedia and may be reused under a CC BY-SA license.Normally, as the price of goods rises, thesubstitutioneffectmakes consumers purchase less of it, and more of substitute goods.
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.This tends to cause workers to supply more labour (thesubstitutioneffect).
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.The fundamental theorem of demand states that the rate of consumption falls as the price of the good rises; this is called the "substitutioneffect".
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.As the price of a commodity falls, consumers move toward it from relatively more expensive goods (thesubstitutioneffect).
FromThis example is from Wikipedia and may be reused under a CC BY-SA license.
Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.There is also asubstitutioneffect.
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Wikipedia
This example is from Wikipedia and may be reused under a CC BY-SA license.The seventh term, 2/( )p, is the negativesubstitutioneffectof consumption in youth for environmental maintenance.
From theCambridge English Corpus
This is a standard staticsubstitutioneffect(our label differentiates this static effect from its dynamic counterpart introduced shortly).
From theCambridge English Corpus
Contrary to static substitution effects, these two labors are adjusted in the opposite directions, and this dynamicsubstitutioneffectcounteracts consumption smoothing effects.
From theCambridge English Corpus
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