Which of the following terms describes that, for comparable goods, the product with the lowest price will enjoy the highest level of demand and widest distribution?

The concept that, for comparable goods, the product with the lowest price will have the highest level of demand and the widest distribution is rooted in the idea of substitution. When consumers are faced with several similar products, they are more likely to choose the one that is less expensive, as it provides the same utility at a reduced cost. This behavior reflects the consumers’ inclination to maximize their value for money and ensure that their budget stretches further.

In marketplaces where several products fulfill similar needs, a lower price can often lead to increased demand as consumers opt for the cost-effective choice. This creates a competitive environment where products are substituted for one another based on pricing, allowing the cheapest option to dominate in terms of sales and market presence. As a result, products that are seen as substitutes for one another compete directly on price, ultimately impacting their demand levels and distribution capabilities in the market.