Ceteris paribus, a 10 percent increase in income results in a 50 percent decline in the quantity of potatoes purchased. this implies potatoes can be categorized as substitute.
A substitute is an item that is being used to fill the gap of something that a consumer can not get. They may not be able to receive that item if they can not afford it. In this case, there was a rise in income and a decrease in potatoes so we can gather that many consumers were using the potatoes as a substitute for another good.
An average percentage (50%) decline in the rate of a commodity (potatoes) with a minute increase in income implies that the commodity(potatoes) can be categorized as a substitute.
A substitute is the replacement is a commodity that customers may readily swap out for another.
In economics, products or commodities are frequently substituted when demand for one rises while the price of the other rises.
When a product's price rises, the substitution effect occurs, resulting in a drop in sales due to buyers migrating to cheaper alternatives.
From the given information:
Ceteris paribus (i.e. all things being equal), a 10 percent increment in income which resulted into 50% decline in potatoes purchased indicates that the potatoes is categorised as a substitute for the little increment of their annual income.
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