Examples of using Substitution effect in English and their translations into Tagalog
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Ecclesiastic
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Colloquial
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Computer
As the priceof a commodity falls, consumers move toward it from relatively more expensive goods(the substitution effect).
A substitution effect, the result of a change in the relative prices of two goods; and an income effect, the effect of a change in price resulting in a change in the consumer's purchasing power.
The first term on the right-hand side represents the substitution effect, and the second term represents the income effect.[1] Note that since utility is not observable, the substitution effect is not directly observable, but it can be calculated by reference to the other two terms in the Slutsky equation, which are observable.