en>JrRong: Just add another name of permutable primes

2014-10-09T22:52:51Z

Just add another name of permutable primes

en>Bubba73: comma (number format)

2013-08-06T02:56:33Z

comma (number format)

← Older revision		Revision as of 04:56, 6 August 2013
Line 1:		Line 1:
	~~They call me Gabrielle~~. ~~Vermont needs always been my livelihood place~~ and ~~I eat everything~~ that ~~I definitely~~ have ~~here~~. As a ~~complete girl what I simply like~~ is ~~going within order~~ to ~~karaoke but I haven~~'~~t ever made~~ a ~~dime you~~'ll. ~~I am~~ a ~~very cashier~~ and I'~~m doing pretty~~ good ~~financially. See what~~'~~s new on great website here~~: ~~http~~://~~prometeu~~.~~net~~<br><br>~~My blog post~~: [~~http:~~//~~prometeu~~.~~net clash~~ of ~~clans cheat~~]
			In economics, one way that two or more goods can be classified is by examining the relationship of the demand schedules when the price of one good changes. This relationship between demand schedules leads to classification of goods as either substitutes or complements. Substitute goods are goods which, as a result of changed conditions, may replace each other in use (or consumption).<ref>{{cite book\|last=Nicholson\|first=Walter\|title=Microeconomic Theory\|year=1998\|publisher=The Dryden Press}}</ref> A '''substitute good''', in contrast to a [[complementary good]], is a [[Good (economics)\|good]] with a positive [[cross elasticity of demand]]. This means a good's demand is increased when the price of another good is increased. Conversely, the demand for a good is decreased when the price of another good is decreased. If goods A and B are substitutes, an increase in the price of A will result in a leftward movement along the demand curve of A and cause the demand curve for B to [[Demand curve#Changes that increase demand\|shift out]]. A decrease in the price of A will result in a rightward movement along the demand curve of A and cause the demand curve for B to [[Demand curve#Changes that decrease demand\|shift in]].[[File:Substitute good chart.jpg\|thumb\|\|550px\|750px\|Substitute good graphical example]]
			Examples of substitute goods include [[margarine]] and [[butter]], [[tea]] and [[coffee]]. Substitute goods not only occur on the consumer side of the market but also the producer side. Substitutable producer goods would include: [[petroleum]] and [[natural gas]] (used for heating or [[electricity]]). The degree to which a good has a perfect substitute depends on how specifically the good is defined. Take for example, the demand for [[Rice Krispies]] cereal, which is a very narrowly defined good as compared to the demand for cereal generally. The fact that one good is substitutable for another has immediate economic consequences: insofar as one good can be substituted for another, the [[demand]]s for the two kinds of good will be bound together by the fact that customers can trade off one good for the other if it becomes advantageous to do so.

			==Increase in price==
			An ''increase'' in [[price]] ([[ceteris paribus]]) will result in an ''increase'' in demand for its substitute goods. If two goods have a high substitutability, the change in demand will be much greater. Thus, economists can predict that a spike in the cost of a particular brand of detergent is likely to result in a large change in demand for other brands, whereas a change in the price of pencils will have a much smaller effect on the demand for e, such as pens on legal documents or pencils on most high-school maths homework.

			==Different types==
			It is important to note that when speaking about substitute goods we are speaking about ''two different kinds'' of goods; so the "substitutability" of one good for another is always a matter of degree. One good is a '''perfect substitute''' for another only if it can be used in exactly the same way. In that case the [[utility]] of a combination is an increasing function of the sum of the two amounts, and theoretically, in the case of a price difference, there would be no demand for the more expensive good.

			In microeconomics, two types of substitutes are being distinguished, '''gross substitutes''' and '''net substitutes'''. Good <math>X_i</math> is said to be '''gross substitute of good''' <math>Y</math> if
			:<math>
			\frac{\partial X_i}{\partial P_Y} >0
			</math>

			Goods X and Y are said to be '''net substitutes''' if
			:<math>
			\left.\frac{\partial X_i}{\partial P_Y}\right\|_{U=const}>0
			</math>

			where <math>U=U(X,Y)</math> is a utility function for the two goods.<ref>{{cite book\|last=Nicholson\|first=Walter\|title=Microeconomic Theory\|year=1998\|publisher=The Dryden Press}}</ref>

			==Substitutability of a good==
			[[Image:Indifference-curves-perfect-substitutes.svg\|thumb\|[[Indifference curve]] for perfect substitutes]]
			Goods that are completely substitutable with each other are called [[perfect substitute]]s. They may be characterized as goods having a constant [[marginal rate of substitution]].<ref>{{cite book\|last=Browning\|first=Edgar K\|title=Microeconomic Theory & Applications 6th Edition\|year=1999\|publisher=Addison Wesley Educational Publishers\|location=New York}}</ref> Writeable compact disks from different manufacturers are often considered to be perfect substitutes. As the price of one brand of CD rises, consumers will be expected to substitute other brands of CD in a one-to-one fashion. This means that the total quantity of CDs purchased would not change.

			Imperfect substitutes have a lesser level of substitutability, and therefore exhibit variable marginal rates of substitution along the consumer [[indifference curve]]. The consumption points on the curve offer the same level of utility as before but the compensation now depends on the starting point of the substitution. An example of such a product is the soft drink. As the price of [[Coca-Cola]] rises, consumers would be expected to substitute [[Pepsi]]. However, many consumers prefer one brand of soft drink over the other. Consumers who prefer Coke to Pepsi, for example, will not trade between them in a one-to-one fashion. Rather, a consumer would be willing to give relatively large amounts of Pepsi in exchange for relatively small amounts of Coke.

			==Monopolistic Competition==
			Many markets for commonly used goods feature products which are perfectly substitutable yet are differently branded and marketed, a condition referred to as [[monopolistic competition]]. A good example may be the comparison between store brand and name brand versions of medications - the products may be ''identical'' but the packaging is differentiated by the vendors. Since the goods are essentially alike, the only genuine difference between them is the price - their vendors rely primarily on price and [[brand]]ing to effect sales. In those sectors consumer choice is usually driven by discriminate according to ''lowest price'', with higher-priced variants relying on a sense of exclusivity created by slicker branding to maintain competitiveness.

			{{col-begin}}
			{{col-2}}
			* Gasoline / Petrol
			* Milk
			* Internet connectivity (ISP services)
			{{col-2}}
			* Electricity
			* Telephony
			* Airline tickets
			{{col-end}}

			Perfect substitutability is significant in the era of [[deregulation]], since there are usually several competing providers in a field (e.g. electricity suppliers) each retailing exactly the same product. The result is often aggressive [[price competition]] between the retailers.

			==Perfect Competition==
			One of the requirements for [[perfect competition]] is that the products of competing firms should be perfect substitutes. When this condition is not satisfied, the market is characterized by [[product differentiation]].

			==Good Substitution==
			Substitute goods exhibit no complementarities, as in a [[complementary good]].

			In other words, '''good substitution''' is an [[Economics\|economic]] concept where two goods are of comparable value. Potatoes from different farms are an example; if the price one farm's potatoes goes up, people will stop buying them and buy the other farm's instead, [[ceteris paribus]] (assuming that potatoes from different farms are homogeneous).

			==References==
			{{Reflist}}

			==See also==
			*[[Ersatz]], the original German word
			*[[list of economics topics]]

			{{Goodtypes}}

			{{DEFAULTSORT:Substitute Good}}
			[[Category:Goods]]
			[[Category:Consumer theory]]
			[[Category:Perfect competition]]

en>SamuelRiv: arrange sentence around the two lists

2012-07-27T07:03:29Z

arrange sentence around the two lists

New page

They call me Gabrielle. Vermont needs always been my livelihood place and I eat everything that I definitely have here. As a complete girl what I simply like is going within order to karaoke but I haven't ever made a dime you'll. I am a very cashier and I'm doing pretty good financially. See what's new on great website here: http://prometeu.net<br><br>My blog post: [http://prometeu.net clash of clans cheat]

Permutable prime - Revision history

en>JrRong: Just add another name of permutable primes

en>Bubba73: comma (number format)

en>SamuelRiv: arrange sentence around the two lists