The Substitution effect will be stronger when:

CA Foundation · Business Economics · MTP · September 2025
The Substitution effect will be stronger when:
(A) A. The goods are closer substitute
(B) B. There is lower cost of switching to the substitute good.
(C) C. There is lower inconvenience while switching to the Substitute good.
(D) D. All the above

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. All the above

Topics: Theory of Demand and Supply

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