Substitute

Substitute
A product or service that satisfies the need of a consumer that another product or service fulfills. A substitute can be perfect or imperfect depending on whether the substitute completely or partially satisfies the consumer. A consumer might consider Pepsi to be a perfect substitute for Coke, or Land O’Lakes butter to be a perfect substitute for Kerrygold Irish Butter. However, if a consumer sees a difference in these brands, he may see Pepsi and Land O’Lakes as imperfect substitutes, even if economists might consider them perfect substitutes.

For a product to be a substitute of another good, it must share a particular relationship with that good. When a good's price increases, the demand for its substitute will increase because consumers will go looking for a cheaper alternative. Conversely, when a good's price decreases, the demand for its substitute will decrease. For example, margarine is a substitute for butter because a consumer can meet similar needs by using margarine. So, when the price of butter rises, the demand for margarine will likely increase.


Investment dictionary. . 2012.

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  • Substitute — may mean:In General English Usage:To replace one thing with anotherIn sport:A person who replaces an exiting competitor during the course of a game, as permitted by the laws of the game. Such replacements are generally made for tactical reasons,… …   Wikipedia

  • Substitute — «Substitute» Sencillo de The Who Lado B «Circles (Instant Party)» «Waltz for a Pig» (USA) Publicación …   Wikipedia Español

  • substitute — n 1 surrogate, *resource, resort, expedient, shift, makeshift, stopgap Analogous words: *device, contrivance, contraption: duplicate, copy, *reproduction 2 Substitute, supply, locum tenens, alternate, understudy, double, stand in, pinch hitter… …   New Dictionary of Synonyms

  • Substitute — Sub stit ute, n. [L. substitutus, p. p. of substituere to put under, put in the place of; sub under + statuere to put, place: cf. F. substitut. See {Statute}.] One who, or that which, is substituted or put in the place of another; one who acts… …   The Collaborative International Dictionary of English

  • substitute — [adj] alternative acting, additional, alternate, another, artificial, backup, counterfeit, dummy, ersatz*, experimental, false, imitation, makeshift, mock, near, other, provisional, proxy, pseudo*, replacement, representative, reserve, second,… …   New thesaurus

  • substitute — ► NOUN 1) a person or thing acting or serving in place of another. 2) a sports player eligible to replace another after a match has begun. ► VERB 1) use, add, or serve in place of. 2) replace with another. 3) replace (a sports player) with a… …   English terms dictionary

  • Substitute — Sub stit ute, v. t. [imp. & p. p. {Substituted}; p. pr. & vb. n. {Substituting}.] [See {Substitute}, n.] To put in the place of another person or thing; to exchange. [1913 Webster] Some few verses are inserted or substituted in the room of others …   The Collaborative International Dictionary of English

  • substitute — I noun agent, alternate, alternative, auxiliary, delegate, deputy, double, emissary, envoy, factor, lieutenant, pinch hitter, plenipotentiary, proxy, regent, relief, replacement, representation, representative, stand in, steward, stopgap,… …   Law dictionary

  • substitute — [sub′stə to͞ot΄, sub′stətyo͞ot΄] n. [ME < L substitutus, pp. of substituere, to put instead of < sub , under + statuere, to put, place: see STATUE] 1. a person or thing serving or used in place of another 2. Gram. any word or word group, as …   English World dictionary

  • substitute in — v.    to take over a case from another lawyer, which must be confirmed by a written statement filed with the court.    See also: substitution of attorney Law dictionary. EdwART. 2013 …   Law dictionary

  • substitute — ▪ I. substitute sub‧sti‧tute 1 [ˈsʌbsttjuːt ǁ tuːt] noun [countable] 1. something new or different that can be used instead of something else: • Sugar substitutes are used by the soft drinks industry. substitute for • Training is important but… …   Financial and business terms

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