I m nt getting substitution nd price effect

hi harshita..well substitution effect and income effect are very deep ecnomics so lets not get into it very deeply.....simply putting it.:- Substitution effect is the effect when due to change in the price of the COMMODITY..the consumer stops consuming it and SHIFTSto the NEXTCLOSESUBSTITUTE...that means if a consumer is consuming tea and due to rise in price of tea the consumer SHIFTSfrom tea to COFFEE this CHANGING of commodity is called Substituition Effect.

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ok thnx

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