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Definition of Substitute:

Substitutes are goods or services that have the same function, but are not the same product.

Detailed Explanation:

If the price of oranges increases, the quantity demanded of oranges would drop, so fruit loving consumers would purchase peaches instead of oranges. Peaches and oranges are substitutes. When the price of a good increases, the demand for all of its substitutes will also increase. Conversely, if the price of a good decreases, the demand for its substitutes will decrease. Competing companies in the same industry often sell substitute goods. For example, Coca-Cola and PepsiCo offer substitute soft drinks. If one company increases its price, the demand for the other company's soft drinks will increase. 

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