[Note: The distance between cities in California (US) distance chart below is straight line distance (may be called as flying or air distance) between the two locations in California (US) calculated based on their latitudes and longitudes. This distance may be very much different from the actual travel distance.]
Price of Related Goods: Demand for the given commodity is also affected by change in prices of the related goods. Related goods are of two types: (i) Substitute Goods: Substitute goods are those goods which can be used in place of one another for satisfaction of a particular want, like tea and coffee.
The price a business charges for its product affects consumersâ perceived value of the product, can create barriers to entry for new competitors, might force existing competitors to lower their prices, affects a companyâs ability to use some distribution channels, and sends a brand message to consumers.