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Substitute goods
From ZuluNotes - Free Leaving Cert Notes
| Substitute goods | |
|---|---|
| |
| This is an Economics definition | |
| It is found mainly in the Demand and Supply section | |
| Level | H/O |
Substitute goods are goods that could be used instead of the good itself, eg low-fat spread instead of butter. Substitute goods play a large role in the demand and price of a good or service. For example, if coke increases it's price, it's demand will fall, but as people will still have a demand for soft drinks, the demand for Pepsi will go up. This is known as the substitution effect.
