Traducciones de „substitution effect“ en el diccionario inglés » árabe

substitution effect ECON.

substitution effect

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inglés

Normally, as the price of goods rises, the substitution effect makes consumers purchase less of it, and more of substitute goods.

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Some economists predict that a substitution effect will spur demand for alternate energy sources, such as coal or liquefied natural gas.

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This is analogous to the definition of the income effect from the income elasticity of demand, or the substitution effect from the price elasticity.

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An example would be the hypothetical separation of the income effect and the substitution effect of a price change, which actually go together.

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