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Which is likely to occur if there is a price increase for a good which exhibits elastic demand

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Your answer would be, If there is a price increase for a good; People might buy a LESS EXPENSIVE substitute good.


(Substitution Effects) =====> Example =====> If the Price of Coffee goes up, Then people will substitute for Tea, Because it is less cheaper. (If that makes sense.).







Hope that helps!!!!! -P- : )

User Neha Shukla
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