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What Is the Term for the Substitution of One Product

question 57

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What is the term for the substitution of one product for another as a result of a change in their relative prices?


Definitions:

Transit

The movement of people or goods from one location to another, typically refers to public transportation systems.

Equilibrium Price

The market price at which the quantity of an item supplied is equal to the quantity demanded.

Fine Imposed

A monetary penalty levied by an authority on individuals or entities as punishment for violations of legal rules or regulations.

Interest Rate

The cost of borrowing money or the compensation for the service and risk of lending money, usually expressed as a percentage.

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