A substitute good is one that
A) appeals to a wide spectrum of consumers
B) is used together with another good
C) is exchanged on the black market
D) is produced by the same firm as another good
E) can be used in place of another good,fulfilling the same basic purpose

Question

Quizplus · Accepted Answer

A substitute good can be used in place of another good, fulfilling the same basic purpose. This means that if a consumer wants to purchase a specific good but it is not available or too expensive, they can choose to purchase a substitute good instead that will serve the same purpose. For example, if the price of beef increases, consumers may switch to purchasing chicken as a substitute good.

A Substitute Good Is One That