geographic market if they are sold in different locations, it is costly to transport the goods or it is costly for consumers to travel to buy the goods.

Only if the two products satisfy the three conditions, will they be classified as close substitutes according to economic theory.

An example of substitute goods are tea and coffee. These two goods satisfy the three conditions: tea and coffee have similar performance characteristics (they quench a thirst), they both have similar occasions for use (in the morning) and both are

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