The conversation between human and AI assistant.
What is the difference between perfect and imperfect substitutes?
Can you explain to me the difference between perfect and imperfect substitutes?
Of course! Perfect substitutes are products or services that can be used in the same way and have the same utility for the consumer. For example, two different brands of sugar. Imperfect substitutes, on the other hand, are not identical products but can still meet the same need. An example would be coffee and tea.