When the price of beef skyrockets, consumers switch to pork and chicken. This demonstrates ________.
A) the threat of new entrants
B) the threat of substitutes
C) the bargaining power of buyers
D) the bargaining power of suppliers

Question

Quizplus · Accepted Answer

The behavior of consumers switching to pork and chicken in response to a spike in beef prices shows that there are substitute products available, which implies a high level of threat of substitutes.

When the Price of Beef Skyrockets, Consumers Switch to Pork