Substitutes are products or services that can replace each other in fulfilling a similar need or function. For example, if a consumer prefers coffee but cannot find it, they might choose tea instead. Substitutes can affect market demand, as the availability of one option can influence the sales of another. In economics, the concept of substitutes is important for understanding consumer behavior and pricing. When the price of one product rises, consumers may turn to a substitute, leading to increased demand for that alternative. This relationship helps businesses strategize pricing and marketing to remain competitive in the market.