Demands and availability of various substitutes in goods : The competency of choice
Demand is the major element that runs the market needs and enables the changes according to the preferences and requirements of the times and trends. This varies according to the requirements and necessity of a society and some influence involved. Demand is always inter-related with its' supply; whether the supply is being conducted smoothly or not. There are numbers of substitutes available, be it the substitutes for the goods in demand or be it the price of the goods which is being availed in the market.
For eg: A company "T" sells camomile tea packs at a price of $15 per sachet and there are 2 more companies named "G" and "P", selling the Oolong tea sachet for $11 and Green tea sachet for $11 simultaneously, there is a line of choice for the buyers as to which type of tea the buyer prefers, considering the facts like the taste and preference of the buyer or the purchasing power or the willingness to purchase.
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