In the example provided, why is fruit punch considered a substitute product for lemonade?
Understand the Problem
The question is asking for the reasoning behind fruit punch being classified as a substitute for lemonade, specifically looking for the option that explains why they can serve similar purposes or needs.
Answer
Fruit punch and lemonade are substitutes because they are similar, refreshing drinks.
Fruit punch is considered a substitute product for lemonade because they serve a similar purpose as refreshing, sweet beverages. Consumers might choose one over the other based on availability, preference, or price.
Answer for screen readers
Fruit punch is considered a substitute product for lemonade because they serve a similar purpose as refreshing, sweet beverages. Consumers might choose one over the other based on availability, preference, or price.
More Information
Substitute goods are products that can replace each other in use or consumption. When the price or availability of one changes, it can affect the demand for the substitute.
Tips
A common mistake is assuming that all sweet drinks are substitutes, not considering that preference and occasion can also impact substitutability.
Sources
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