What does Substitution Effect mean?
The decrease in sales for a product that can be attributed to consumers switching to cheaper alternatives when its price rises.
Due to the Substitution Effect, when the price of beef rises, consumers buy more chicken.
Substitution Effect in German, French, Spanish and Italian
GermanSubstitutionseffekt
Verhaltensänderung von Konsumenten bei Preisänderungen zugunsten günstigerer Güter.
FrenchEffet de substitution
Variation de la demande résultant du changement du prix relatif des biens.
SpanishEfecto sustitución
Tendencia de los consumidores a reemplazar bienes caros por otros más baratos.
ItalianEffetto di sostituzione
Cambiamento della domanda dovuto al fatto che un bene è diventato relativamente più costoso.
Synonyms and opposites for Substitution Effect
- Synonym Substitution mechanism