Substitutes

Substitutes are products or services that can replace each other because they fulfill similar needs or functions. When the price of one decreases, people might buy more of that substitute instead of the other, reducing demand for the more expensive option. For example, butter and margarine are substitutes since both can be used for baking or spreading. The availability and prices of substitutes influence consumer choices and market dynamics. Essentially, substitutes give consumers alternatives, allowing them flexibility based on price, preference, or availability.