Substitution effect
When the price of a product rises, consumers may replace it with an alternative; chicken instead of beef, for example. Statisticians need to adjust for this when compiling inflation indices. In demand theory, the change in demand for a good in response to a change in its price can be broken down into the substitution effect (the party due to the change in its price relative to other goods) and the income effect (the part due to the change in real income).
