Substitution effect

 

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Substitution effect

That 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 Matches

Import substitution

Import substitution

A 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.


Import substitution development strategy

Import substitution development strategy

A development strategy followed by many Latin American countries and other LDCs that emphasize import substitution-accomplished through protectionism-as the route to economic growth.


Constant elasticity of substitution function

Constant elasticity of substitution function

See CES function


Same day substitution

Same day substitution

Offsetting changes in a margin account during the day that result in no overall change in the balance of the account.


Marginal rate of substitution

Marginal rate of substitution

In a production function or a utility function, the ratio at which one argument (input) substitutes for another along an isoquant or indifference curve.


Further Suggestions

Substitution swap
Asset substitution
Elasticity of substitution
No Substitution


 
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