The Substitution effect will be stronger when

CA Foundation · Business Economics · RTP · September 2025
The Substitution effect will be stronger when
(A) A. The goods are closer substitution
(B) B. There is lower cost of switching to the substitute goods
(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 (A)

A. The goods are closer substitution

Topics: Theory of Demand and Supply

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