A good that is used in place of another good to meet the same need is called

Question

Business

Tyshawn Evans

17 September, 07:54

A good that is used in place of another good to meet the same need is called

+3

Answers (1)

Know the Answer?

Camille Logan · Answer 1

Substitute goods

Explanation:

In economics, products, or services that consumers consider similar are called substitutes. Substitute goods and services provide solutions to the same consumer problem. As products, they can be used in place of one another.

Substitute goods offer consumers an opportunity to choose the products of their preference. They create competition in the market place, which leads to innovations and better prices for consumers. An increase in the price of a substitute good increases the demand for the others. Examples of substitute goods include coffee and tea, butter and margarine, and apples and mangoes.