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.

See also

  1. Complimentary goods
  2. The Substitution Effect

Who Added These Notes?

Nerdnoc90

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