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Translations for „substitution effect“ in the English » Arabic Dictionary (Go to Arabic » English)

Monolingual examples (not verified by PONS Editors)

English
Normally, as the price of goods rises, the substitution effect makes consumers purchase less of it, and more of substitute goods.
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Some economists predict that a substitution effect will spur demand for alternate energy sources, such as coal or liquefied natural gas.
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This is analogous to the definition of the income effect from the income elasticity of demand, or the substitution effect from the price elasticity.
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An example would be the hypothetical separation of the income effect and the substitution effect of a price change, which actually go together.
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