The availability of replacements determines whether the price elasticity of demand is elastic or inelastic.
The existence of a product that a consumer can buy instead of a product made by an industry. A substitute product is one that comes from a different industry but yet provides the consumer with the same advantages as the product made by companies in that area.
Products with several replacements have extremely unstable costs. There is a larger likelihood of making bigger earnings in a market with fewer competing products
A drop in supply and a shift to the left in the supply curve result from an increase in the price of a substitute good. Sellers sell more of the replacement good and less of the original good due to the increased price.
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