What is meant by "imperfect substitutablity of one factor for another"
Tea and pen are imperfect substitutes
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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.