Price Rise & Demand Drop: Econ 101

Dive into the basics of Economics with our quick explainer on the substitution effect! Ever wondered what happens to the demand for a good when its price increases? According to the substitution effect, as the price of a good goes up, consumers tend to buy less of it and switch to cheaper alternatives, leading to a decrease in demand for the more expensive item. This concept is a fundamental part of Demand Analysis, a key chapter in 12th-grade Economics. Perfect for students looking to grasp essential economic principles or anyone curious about how market dynamics work. Don't forget to like, share, and subscribe for more educational content!

Standard: 12th
Subject: ECONOMICS
Medium: English

Chapter: DEMAND ANALYSIS
Chapter Number: 3
Book Page: 17

Difficulty: easy

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