ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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of higher quality than another good.
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that is not used in place of another good.
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that can be used in place of another good.
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of lower quality than another good.
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Detailed explanation-1: -A substitute, or substitutable good, in economics and consumer theory refers to a product or service that consumers see as essentially the same or similar-enough to another product. Put simply, a substitute is a good that can be used in place of another.
Detailed explanation-2: -Substitute goods: Substitute goods are those goods which can be used in place of each other to satisfy a given want. e.g., tea and coffee, ghee and refined oil. In case of substitute goods, an increase in the price of one good causes an increase in the demand of the other good.
Detailed explanation-3: -Juice and cold drink are substituted goods, as one could be substituted for the other.
Detailed explanation-4: -The correct answer is Option A) In the extreme, substitutes can ultimately replace an industry’s products or services.
Detailed explanation-5: -Substitutes refer to those goods which can be used in place of other goods for the satisfaction of a particular want. For instance: a)Pepsi and Coke. b) Coffee and Tea.