SUBSTITUTE-IN-CONSUMPTION: One of two goods that can replace each other in consumption--that is, each provides the same basic satisfaction of wants and needs. A substitute good is one of two alternatives falling within the other prices determinant of demand. The other is complement good. An increase in the price of one substitute good causes an increase in demand for the other. A substitute good has a positive cross price elasticity. See also | demand | other prices | consumption | demand curve | demand determinants | demand shock | comparative statics | elasticity | cross elasticity of demand | substitute-in-production |
