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Free_Kalibri [48]
2 years ago
7

When the price of his cable tv increased, michael switched to satellite tv. This illustrates?

Arts
1 answer:
Ludmilka [50]2 years ago
3 0

When the price of his cable tv increased, Michael switched to satellite tv. This illustrates how an individual's tendency to substitute between goods can explain the law of demand.

<h3>What is meant by substitution in Economics?</h3>

This is the term that is used to refer to the ability of an individual to forgo a good for another one due to the fact that the good that trey are moving to can solve similar issues like the other good.

In this case, the price of the good 1 has increased, but this good has close substitutes that can give Michael the same satisfaction hence he has moved to the use of satellite tv.

Read more on substitution here: brainly.com/question/12802700

#SPJ1

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