A-Z Popular Blog Economics Search »

9 Examples of a Substitute Good

 , updated on
Substitute goods are two products or services that fulfill the same customer need. When two goods are substitutes, purchases of one reduces demand for the other. The following are illustrative examples.


Customers see wheat from two different farmers as the same. As such, they substitute one farmer's crop for another without hesitation.


If rice gets expensive, people may buy more wheat in the form of bread.


Directly competing products such as two models of grand piano.


Directly completing brands such as two brands of luxury shoes that are popular with women in their 30s and 40s.


Services such as a high speed train that competes with airlines for intercity travel.


A customer feels that tickets for a classical music concert are too expensive, so they go to a jazz club that night.


It is common for one technology to disrupt another by becoming a more desirable substitution. For example, an internet service may be viewed as a substitute for cable TV services.

Indirect Substitution

Substitution can be extremely indirect. For example, a student might considered the cost of a college education and decide to travel to Europe for an extended period instead.

Inferior Goods

Inferior goods are things that you purchase more when your income declines. For example, fast food is an inferior good that is a substitute for a superior good such as fine dining.


The opposite of substitute goods are complementary goods that have correlated demand. For example, sales of toys and rechargeable batteries are complementary.
Overview: Substitute Good
Two products or services that fulfill the same customer need.
Related Concepts


This is the complete list of articles we have written about goods.
Brown Goods
Business Goods
Capital Goods
Club Goods
Common Goods
Common Resources
Complementary Goods
Consumer Discretionary
Consumer Durables
Consumer Goods
Consumer Products
Consumer Staples
Digital Goods
Durable Goods
Economic Goods
Experience Goods
Fashion Goods
Final Goods
Finished Goods
Goods & Services
Inferior Good
Information Good
Intangible Goods
Intermediate Goods
Knowledge Product
Luxury Goods
Market Goods
Merit Good
Natural Resources
Necessity Goods
Perfect Substitute
Public Goods
Search Good
Social Goods
Soft Goods
Sporting Goods
Substitute Good
Superior Goods
Unsought Goods
Veblen Goods
Virtual Goods
White Goods
If you enjoyed this page, please consider bookmarking Simplicable.


The common types of goods.

Economic Bad

Common examples of an economic bad.

Necessity Goods

The definition of necessity goods with examples.

Information Good

The definition of information good with examples.

Knowledge Product

The definition of knowledge product with examples.

Common Goods

The definition of common goods with examples.

Merit Goods

The definition of merit good with examples.

Intangible Goods

The definition of intangible good with examples.


The definition of consumerization with examples.

Business Models

A list of common business models.

Intangible Value

The definition of intangible value with examples.


The definition of on demand with examples.

One Stop Shop

An overview of one stop shop with examples.


The common types of aftermarket.

Durable Products

The definition of durable product with examples.

Digital Goods

The definition of digital goods with examples.


The definition of microtransactions with examples.

Examples of Superior Goods

The definition of superior goods with examples.

Business Model Innovation

The common types of business model innovation.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map