Substitute Goods:

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Offline Md. Alamgir Hossan

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Substitute Goods:
« on: April 11, 2017, 12:53:31 PM »
Substitute goods are two goods that could be used for the same purpose. If the price of one goods increased then demand for the substitute is likely to raise .therefore, substitute s has a positive cross elasticity of demand.
Example: Some quality product but some different need. Coffee and tea is same product. Same product coffee has not so tea has.