The substitution effect will be stronger when:

CA Foundation · Business Economics · RTP · September 2024
The substitution effect will be stronger when:
(A) A. The goods are closer substitutes
(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 of these

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. All of these

Topics: Theory of Demand and Supply

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