substitution effect
definition: Takes place when a consumer reacts to rise in price by consuming less of that product and more of a substitute good
- Together, these effects help explain why law of demand is true
connected key terms:income effect


everyday examples
▪ almond milk gets more expensive, buy coconut milk
▪ red apples are cheaper than green apples
▪ oatmeal was expensive bought regular cereal
▪ quinoa full price, rice on sale - bought rice

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