Answer to Question #60596 in Microeconomics for diana gina
what is the impact of changes in the price levels of similar goods
Similar goods or substitute goods are products that a consumer perceives as similar or comparable, so that having more of one product makes them desire less of the other product. Formally, X and Y are substitutes if, when the price of X rises, the demand for Y rises. So, if the price for one similar good rises, then the demand for another good rises and vice versa.