noun
substitution effect
Economics term: the change in consumption patterns due to a change in relative prices, holding utility constant.
価格が下がると、代替効果によってその商品の需要が増える。
When the price drops, demand for that product increases due to the substitution effect.
Income effect: change in consumption due to a change in real income, often contrasted with the substitution effect.
Compound of 代替 (substitution) and 効果 (effect), a direct translation of the English economics term 'substitution effect'.