Substitution Effect Homework Help

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What is substitution effect?

Substitution effect can be defined as the change in the pattern of buying goods when the price of the relative substitute goods is changed. This effect is a situation where a consumer decides on which product to buy from the relative goods when the change in the price of them is observed.

One can represent the same effect with the help of demand curve using graphics too. And such a platform will increase the quality of your assignment too. With substitution effect assignment help you will have our experts to work for you!

Examples of substitution effect

We have lots of students registered with us. And we help them with best examples of such a concept. With substitution effect homework help, you can enjoy our services too. With the help of following examples, students will understand this concept more clearly:

  1. Change in the price of clothing and entertainment segment: So consider a situation where you have $100 to spend on a weekend. You have a choice in two relative goods which are: either you spend this money on a movie and popcorn, or you have yourself some nice clothes. So you go the mall and find that the jacket you wanted to buy is $110 and the movie ticket with popcorn will cost $90. What will you choose: of course movie! This is called substitution effect.
  2. Pepsi versus coca cola: now when you reached movie theatre, you want to buy a soft drink as well. Pepsi will cost you $15, and col will cost $10. Well, one can hardly notice any change in the taste, so you will prefer cola because you will still be left with $10 in your pocket. This is another perfect example of the substitution

As an economist student, it is important for you that you must include practical examples in your assignment. Such a segment will help your professors to understand that you have a clear mind on the concept and therefore, it will increase your grades too. In order to receive better example on the same, you can register for our help under our guidance of expert team. With substitution effect assignment help, you will receive enough of some examples.

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