Substitute Goods
Products that can replace each other in satisfying customer needs.
Real World
When Heinz raised baked bean prices by 15% in 2023, supermarkets reported a sharp rise in sales of own-brand beans, a direct substitute, as shoppers switched to the cheaper alternative.
Exam Focus
Explain the cross-price relationship explicitly: 'a rise in the price of good A causes demand for substitute B to increase (shift right)' — sequence matters for marks.
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