This refers to the goods or services which can be used instead of other goods or services.
For example watching a downloaded film at home is a substitute for a cinema visit. Substitutes may be based on price, for example cheaper cuts of meat; technology, for example the number of watches worn has reduced since the proliferation of mobile phones; or preference, for example choosing to go to the shops rather than to watch a sporting event.
Substitute is a term normally found in business economics and financial management. Explore our learning zone to discover more