asendusefekti

Asendusefekt, sometimes referred to as the substitution effect, is an economic concept that describes the change in consumption of a good resulting from a change in its relative price. When the price of a good decreases, it becomes relatively cheaper compared to other goods. This price change encourages consumers to substitute away from more expensive alternatives and towards the now cheaper good. Conversely, if a good's price increases, consumers will tend to substitute away from it and towards relatively cheaper goods.

The asendusefekt is one component of the total effect of a price change on the quantity demanded, the other being the income effect. The income effect refers to the change in consumption that results from a change in the purchasing power of consumers due to a price change. The asendusefekt isolates the change in consumption solely due to the altered relative attractiveness of goods. For normal goods, both the asendusefekt and income effect work in the same direction when prices change, reinforcing the law of demand. However, for inferior goods, the asendusefekt and income effect can work in opposite directions. Understanding the asendusefekt is crucial for analyzing consumer behavior and the impact of price fluctuations on markets.