Final answer:
In economics, substitution refers to the ability to switch resources when one becomes scarce or a better alternative is found. It allows for interchangeability between goods and services, so that an unavailable or inferior resource can be replaced by an alternative, possibly superior one. Substitution is a key concept that addresses concerns about scarcity and the limitations of resources.
Step-by-step explanation:
In economics, the concept of substitution refers to the ability to switch resources when one becomes scarce or a better alternative is found. It allows for interchangeability between goods and services, so that an unavailable or inferior resource can be replaced by an alternative, possibly superior one. Substitution is a key concept that addresses concerns about scarcity and the limitations of resources.
For example, in a free market economy, if the price of a certain resource increases or it becomes limited in supply, consumers can substitute it with a more affordable or readily available alternative. This flexibility helps to ensure the continued production and availability of goods and services.