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Substitution effect |
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Substitution effectThat portion of the effect of price on quantity demanded that reflects the changed tradeoff between the good and other alternatives. Contrasts with income effect.Similar MatchesImport substitutionImport substitutionA strategy for economic development that replaces imports with domestic production. It may be motivated by the infant industry argument, or simply by the desire to mimic the industrial structure of advanced countries. Contrasts with export promotion. Marginal rate of substitutionMarginal rate of substitutionIn a production function or a utility function, the ratio at which one argument (input) substitutes for another along an isoquant or indifference curve. Same day substitutionSame day substitutionOffsetting changes in a margin account during the day that result in no overall change in the balance of the account. Import substitution development strategyImport substitution development strategyA development strategy followed by many Latin American countries and other LDCs that emphasize import substitution-accomplished through protectionism-as the route to economic growth. Asset substitutionAsset substitutionOccurs when a firm invests in assets that are riskier than those that the debtholders expected. Further SuggestionsSubstitution swapNo Substitution Constant elasticity of substitution function Elasticity of substitution |
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