Question

Maria purchases a premium brand of coffee at the grocery store for $8. Which would be considered a substitute good? a coffee pot a bottle of coffee creamer a lower-priced brand of coffee a pound of sugar

Answer 1

A lower-priced brand of coffee would be considered a substitute good

Explanation:

A substitute good, in economics is a goods a customer views as the identical or alike to different goods. Substitutes offer an essential role in the marketplace and are deemed a gain for buyers. It present added choices for purchasers, who are then quite capable to provide their requirements.

They are usually used for the same determination and can provide the demands of customers. If the cost of one good rises, then necessitate for the substitute is expected to grow. Therefore, substitutes have a positive cross elasticity of demand. One of the example of substitute goods is Driving a bike versus driving a automobile.