theeffectof achangein thepriceof aproductorservice, whichencouragescustomerstobuyanotherproductor use anotherserviceinstead(Definition ofsubstitution effectfrom theCambridge Business English Dictionary? Cambridge University Press)
Examplesofsubstitution effect
substitution effectSome economists predict that asubstitutioneffectwill spur demand for alternate energy sources, such as coal or liquefied natural gas.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.To measure the effect, the income elasticity of the good being taxed as well as the incomesubstitutioneffectmust be considered.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.Normally, as the price of goods rises, thesubstitutioneffectmakes consumers purchase less of it, and more of substitute goods.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.This tends to cause workers to supply more labour (thesubstitutioneffect).FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.The fundamental theorem of demand states that the rate of consumption falls as the price of the good rises; this is called the "substitutioneffect".FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.As the price of a commodity falls, consumers move toward it from relatively more expensive goods (thesubstitutioneffect).FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.There is also asubstitutioneffect.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.The seventh term, 2/( )p, is the negativesubstitutioneffectof consumption in youth for environmental maintenance.From theCambridge English CorpusThis is a standard staticsubstitutioneffect(our label differentiates this static effect from its dynamic counterpart introduced shortly).From theCambridge English CorpusContrary to static substitution effects, these two labors are adjusted in the opposite directions, and this dynamicsubstitutioneffectcounteracts consumption smoothing effects.From theCambridge English CorpusThese examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.#https://dictionary.cambridge.org//dictionary/english/substitution-effect##
