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Doubt

What is meant by "imperfect substitutablity of one factor for another"


Sri kanaga Varshini

Sri kanaga Varshini

CA Inter

1K+

23-Nov-20 18:01

28

Answers (4)

It's like the goods are not relateable to each other


Anirudh gupta

Anirudh gupta

CA Inter

20K+

23-Nov-20 18:47

Tea and pen are imperfect substitutes


Anirudh gupta

Anirudh gupta

CA Inter

20K+

23-Nov-20 18:48

Tea and pen are imperfect substitutes

Ok thank you


Sri kanaga Varshini

Sri kanaga Varshini

CA Inter

1K+

23-Nov-20 20:02

Firstly what is substitute goods? Substitute goods are the goods which does same of work in absence of one another. For example pure coconut oil of different brands. Here if one brand increases its price without any additional feature it is likely that its demand will fall drastically. Here marginal rate of substitution is constant Now in case of imperfect substitutes for one another, the goods can be used interchangibly but they have different features i.e. they don't have exactly same features. For example, cooler and AC they can be used in absence of one another but here they have different features and hence Marginal Rate of substitution is variable with change in quantity.


Hrishikesh Ransing

Hrishikesh Ransing

CA Inter

1K+

26-Nov-20 23:32