[This is part of the series: The Complete Guide To Economics 101.]
What are economic substitutes?
Substitutes are goods or services that are similar and can sometimes be used interchangeably.
Substitutes differ from compliments in that they are not used “with” – substitutes are used “instead of.”
Examples of substitutes include:
- Chicken – it can be used to cook in many dishes as a substitute for beef.
- Pepsi – it can be used as a substitute for Coke.
- Apples – they can be used as a substitute for pears.
- And Prada purses – they can be used as a substitute for Coach purses.