Substitution Effect
This is the current revision of Substitution Effect as edited by Tash (talk | contribs) at 02:02, September 22, 2007. This URL is a permanent link to this version of this page.
The Substitution Effect is an economic effect which occurs when the price of a good decreases, such that people begin to buy that good instead of its substitute. For example, if the price of orange juice decreases, you may buy it instead of milk which you used to drink.