Perfect substitute

Answer 1

A perfect substitute refers to a product or service that can completely replace another product or service in the eyes of consumers. This means that consumers see no difference between the two products and are willing to switch between them based solely on price or convenience. In other words, perfect substitutes have identical characteristics and fulfill the same need or want for consumers. Examples of perfect substitutes include generic brands that offer the same quality and function as name-brand products at a lower price.