Substitute goods can make things tricky for how much of a product people want to buy in a competitive economy. Here’s why:
Consumer Choice: When prices go up or down, shoppers can quickly choose cheaper alternatives. This can cause the demand for the original product to drop, which makes things less stable.
Market Dynamics: As people switch products, the market can become unpredictable. This makes it hard for companies to predict how much they will sell and plan how much to produce.
Solution: To keep customers interested, businesses need to study the market and find ways to make their products stand out. This helps them stay in tune with what shoppers want.
Substitute goods can make things tricky for how much of a product people want to buy in a competitive economy. Here’s why:
Consumer Choice: When prices go up or down, shoppers can quickly choose cheaper alternatives. This can cause the demand for the original product to drop, which makes things less stable.
Market Dynamics: As people switch products, the market can become unpredictable. This makes it hard for companies to predict how much they will sell and plan how much to produce.
Solution: To keep customers interested, businesses need to study the market and find ways to make their products stand out. This helps them stay in tune with what shoppers want.