A _ is an equivalent or comparable good or service, which can drop demand for the original good or service, lowering prices over time
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substitute
The term you are looking for is "substitute." A substitute is an equivalent or comparable good or service that can be used as an alternative to the original product. When a substitute is available in the market, it can attract consumers away from the original product, thereby reducing demand and potentially causing prices to decrease over time.
The term you are referring to is a "substitute". A substitute is a product or service that can be used in place of another because it serves a similar purpose or provides the same benefits. When a substitute is available, it can decrease the demand for the original good or service, and this increased competition can lead to lower prices over time.
To understand this concept, you can follow these steps:
1. Identify the good or service for which you want to find a substitute. For example, let's say you want to find a substitute for a particular brand of smartphone.
2. Conduct research to identify alternative products or services that provide similar features or benefits. In the case of a smartphone, you might look for other smartphone brands that offer comparable functionalities and features.
3. Compare the substitute products/services against the original good or service, paying attention to similarities in quality, price, functionality, and customer satisfaction. This will help you determine whether the substitute is a suitable replacement for the original.
4. Consider the impact of the substitute on the demand and pricing of the original good or service. If a substitute is widely available and offers similar benefits at a lower price, it can attract customers away from the original product, leading to a decrease in demand for it. In response, the original product may need to lower its prices to remain competitive in the market.
Understanding substitutes and their potential impact on demand and prices is important in analyzing market dynamics and making informed decisions as a consumer or a business operator.