Strong substitutes can set a limit on the prices firms may charge for their products or services.

Name: Strong substitutes can set a limit on the prices firms may charge for their products or services.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Strong substitutes provide consumers with alternative options, thus limiting the ability of firms to raise prices without risking the loss of customers to competitors offering similar products or services at lower prices.

Strong Substitutes Can Set a Limit on the Prices Firms