ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition of substitute goods – Substitute goods are two alternative goods that could be used for the same purpose. Two phones – one Android (HTC) one iPhone (Apple). In one sense they are close substitutes but to some consumers entirely different. Substitutes present the consumer with alternative choices.

Detailed explanation-2: -In the case of Android and the iPhone, they offer similar functionality and form, but to some consumers there is a big differential in terms of brand loyalty, meaning for certain types of consumers they are very weak substitutes.

Detailed explanation-3: -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-4: -Put simply, a substitute is a good that can be used in place of another. They play an important part in the marketplace and are considered a benefit for consumers. They provide more choices for consumers, who are then better able to satisfy their needs. Example-Coke and Pepsi, tea and coffee, etc.

Detailed explanation-5: -Butter and margarine. Physical books and e-books. Sandals and flip-flops. Tuna and salmon. Steel-toe boots and composite-toe boots. Minivans and sport utility vehicles. Earrings and necklaces. Eyeglasses and contact lenses. More items •03-Feb-2023