substitute

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Substitute

A good or service that satisfies a consumer's needs or desires just as well or almost as well as a similar good or service. A common type of substitute is an off-brand product; for example, a grocery store may sell its own peanut butter to compete with the on-brand peanut butter it also sells. Often, though not always, the price of a substitute is lower than that of the original product, but they follow generally the same trends. For example, if demand for the on-brand peanut butter rises, its price increases, but so does the price of the off-brand peanut butter, because consumers are willing to pay more for peanut butter generally, but are still looking for a bargain.

substitute

See swap.
References in periodicals archive ?
Logically, imperfect substitutability is a necessary but not a sufficient condition for there to be a benefit from product diversity.
Thus, in the two to three decades before the global financial crisis, the substitutability of CRAs' analytical resources did (at the very least) not increase.
This section compares and contrasts the efficiencies of SC configurations under price competition with those under quantity competition and also examines the effects of product substitutability on the comparison.
Thus, we need to define a notion of substitutability adequate for our purposes, indicating whether the replacement of the server A by the server B (or vice versa) is suitable in a certain system willing to perform this reconfiguration.
Rice constitutes the largest share of the household total food expenditure, in both rural and urban centres, with less substitutability in response to changes in own-price and has changed from being a luxury to being a necessity and that rice has become a major food staple in the Nigerian economy.
The iso-cost curves clearly illustrate that substitutability between capacities exists for a certain capacity range, and the range depends on the index case.
types of substitutability differ principally in the sacrifice of nontax
The main difference between the portfolio approach and the monetary models is that the portfolio balance approach assumes imperfect substitutability of domestic and foreign assets.
If there's no substitutability, then there should be little price effect on more broadly marketable products by writing off these distressed assets.
Stimuli characterized by absolute substitutability of function constitute arbitrary conventions.
Regardless of the correlation level higher levels of substitutability reduce the value of the combined projects and increase the probability of investing.