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Operations And Supply Chain Management
Found in: Page 421
Operations And Supply Chain Management

Operations And Supply Chain Management

Book edition 14th
Author(s) F. Robert Jacobs
Pages 800 pages
ISBN 9780078024023

Short Answer

Refers to how common an item is or how many substitutes might be available.

In economics and consumer theory, a substitute or substitutable good is a product or service that customers perceive to be similar to another product. A substitute is something that can be used instead of something else.

See the step by step solution

Step by Step Solution

Step 1: Substitute "good" with "examples"

A substitute is a service or product that clients may easily exchange for something else. When demand for one rises and the price of the other rises, products are commonly swapped in economics. Substitutes provide consumers with more choices and alternatives while enhancing market competitiveness and cutting prices.

A substitute is a product or service that customers may easily exchange for something else. When demand for one rises and the price of the other rises, products are commonly swapped in economics. Substitutes give customers more choices and alternatives while enhancing market competitiveness and cutting prices.

Here are some instances of goods that can be swapped out:

  1. Four quarters are exchanged for a $1 bill (also known as fungibility)
  2. Pepsi vs. Coca-Cola
  3. Gasoline (regular vs. premium)
  4. Butter and margarine
  5. Tea and coffee
  6. Apples and oranges
  7. Deciding whether to ride a bike or drive a car
  8. E-books and print books are both available

Step 2: Specificity refers to how prevalent an item is or how many possible substitutes are available

Specificity refers to how prevalent an item is and how many alternatives are available in a relative sense. Commonly available things can be obtained utilizing a very straightforward approach.

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