Business
rhpuckett
2020-12-31 06:47:42
Replacing a good with a similar good because of a change in prices is an example of the .
ANSWERS
rmpatel2002
2020-12-31 13:44:03

Answer : substitution effect In economics, substitution effect refers to the process of replacing a good with a similar good because of a change in the price. This is based on the assumption that as prices change or increase, consumers would decide to look for cheaper items or the low-cost alternatives thus resulting to  the change of merchandise or the products. The substitution effect may give an advantage especially to retailers however, in the general picture it provides a disadvantage as it will limit the choices. 

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