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The Significant type of substitution is calculated using the Special Formula Method.

This method
is commonly used in Engineering to analyze and measure the different behavior of purchasers. It
refers to the amount of one good that can be consumed in place of another good. The Formula is
represented in such a way that the consumer attains an equal satisfaction level from all
permutations of two different products. The Marginal Rate of Substitution (MRS) is calculated
between these two products, which are graphically represented as Specials. These Specials
indicate the goods that a purchaser would substitute for one another. At equal consumption
levels, Significant type of substitutions are the same and are known as the equilibrium of
consumption level. They are calculated using the Special Formula between different
commodities. The Special Formula slopes in a negative direction due to the Significant Type of
Substitution. The utilities of these two different products can be expressed as significant values.

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