Substitutes: These are goods that can easily replace another good. Examples include coffee and tea, apples and pears, almond milk and coconut milk, etc.

Brainstorm and list examples of substitutes below.

_Per:_ Economics Name: Per: Handed Substitution + Income Effects Background: Why exactly does a change in price cause consumers to purchase more or less of that product? We know the Law of Demand states that when price increases, quantity demanded decreases and vice versa. There are two forces that explain this consumer behavior: the Substitution Effect and the Income Effect. Think of these as theories that explain this classic consumer behavior. Remember, both effects are shown through movement along the demand curve. We're not actually moving the demand curve itself- yet! Substitutes: These are goods that can easily replace another good. Examples include coffee and tea, apples and pears, almond milk and coconut milk, etc. Brainstorm and list examples of substitutes below. Income: This is money you receive in exchange for labor. An example would be a teacher's paycheck. What other forms of income can you think of