In economics, a budget line represents the various combinations of two items or services that a consumer can afford given their income and the prices of those items or services.
Competition refers to the rivalry in the marketplace wherein goods and services are bought from those who provide 'the most for the money.' It rewards efficient producers and suppliers, driving the economy toward the efficient use of resources.
Line extension refers to the addition of another variety of a product to an already established brand line of products. This strategy helps brands to capitalize on their existing reputation and market base, offering consumers more options while remaining under the trusted umbrella of the original brand.
Substitutes are products or services that can be used in place of each other, fulfilling similar needs or functions. Substitutes play a crucial role in determining market dynamics and consumer choices.
Substitution Law is an economic proposition stating that no good is absolutely irreplaceable; at some set of prices, consumers will opt for substitute goods.
