Based on the definition of the demand law, that states that when the price goes high, the demand for the product in the market reduces, the substitution effect applies in this case.
Consumers always prefer products worth of their price. So if a particular product shifts in price, consumers are likely to find a substitute of the similar product. Income also had an effect. When the product increases its price, the quantity that consumers purchase decreases and the consumption of expensive product reduces.
Perfect competition is a standard of the business based on the hypothesis that a substantial fraction of organization to design similar goods utilized by a wide amount of customers. The prototype of perfect competition also implies that it is comfortable for modern organizations to penetrate the market including for surviving unities to give up. Moreover ultimately, it implies that consumers and merchants have comprehensive knowledge about market requirements.
Because these crops required large areas of land, the plantations grew in size, and in turn, more slaves were required to work on the plantations. This sharpened class divisions
