The competitive pressures from substitute products tend to be stronger when good substitutes are readily available. Question 1AnswerTrueFalse

The competitive force of substitute products is strong whenMultiple choice question.substitutes are more highly priced relative to the performance they deliver.substitutes are attractively priced.end users face high costs when switching to substitutes.acceptable substitutes are not available.

In which of the following instances are industry members NOT subject to stronger competitive pressures from substitute products?Question 7AnswerA.The costs to buyers of switching over to the substitutes are low.B.Buyers are wary about using substitutes.C.The quality and performance of the substitutes are well-matched to what buyers need to meet their requirements.D.Buyer brand loyalty is weak.E.Substitutes are readily available at competitive prices.

How does the existence of substitutes affect the price elasticity of demand?Question 1Answera.The existence of substitutes leads to higher prices in the marketplace.b.The existence of substitutes leads to a situation with perfect elasticity.c.If there are many substitutes, the price elasticity of the good will be more elastic than otherwise.d.None of these answers are correct.

If two products are substitutes, then the: Group of answer choices 1.cross-price elasticity of demand between them will be positive. 2.cross-price elasticity of demand between them will be negative. 3.price elasticity of demand for both will be positive. 4.income elasticity of demand for both will be high.

If two commodities are substitutes, then an increase in the price of one of them will increase the demand for the other.