One of the more difficult things to teach to students is the difference between a Substitute (good or service) and the Substitution Effect that the Substitute good or service has on demand for the good that is subject to substitution. Got that?
Here is a terrific article on the rise in beef prices and its impact on the market for chicken. Below I created some slides that hopefully will make the distinction between the two key micro-economic concepts more clear. Use as you like! Let me know if you see any errors or how I can refine any aspect. Thanks.
There's no beef about it, prices for red meat are surging and demand for chicken is benefiting.
Chicken's versatile appeal and its perception as a good source of protein that's better for you than red meat are also driving sales, RBC Capital Markets' David Palmer said in a phone interview.
"Chicken is really hot right now, and poultry is viewed as a source of protein that's relatively less inflationary," Palmer said.