Definition of substitute goods.

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Offline Md. Alamgir Hossan

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Definition of substitute goods.
« on: April 13, 2017, 04:50:07 PM »
•   Substitute goods are two goods that could be used for the same purpose.
•   If the price of one good increases, then demand for the substitute is likely to rise.
•   Therefore, substitutes have a positive cross elasticity of demand.