SUBSTITUTE: In terms of demand (that is, substitute-in-consumption), one of two goods that replace each other in consumption such that an increase in the price of one good leads to an increase in demand and a rightward shift in the demand curve for the other good. If the demand of good 1 increases as the price of good 2 increases, the goods are substitutes-in-consumption. In terms of supply (that is, substitute-in-production), one of two goods that replace each other in either producing using the same resources in an either/or fashion, such that an increase in the price of one good leads to a decrease in supply and a leftward shift in the supply curve for the other good. If the supply of good 1 decreases as the price of good 2 increases, the goods are substitutes-in-production.

     See also | demand | supply | substitute-in-consumption | substitute-in-production | consumption | production | demand curve | supply curve | demand determinants | supply determinants | demand shock | supply shock | comparative statics | elasticity |

SUBSTITUTE, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 12, 2025].

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A shock to the short-run aggregate market caused by an increase in aggregate supply, resulting in and illustrated by a rightward shift of the short-run aggregate supply curve. An increase in aggregate supply in the short-run aggregate market results in a decrease in the price level and an increase in real production. The level of real production resulting from the shock can be greater or less than full-employment real production.

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