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Economics is not my strongest section, but;
A- Substitute goods are purchased when demand is more elastic, so when prices rise people will purchase the substitute product.(ex chicken for beef when beef prices rise)
Threat of entry by new competitors will keep prices low because high prices attract new competitors. Low prices----decreased likelihood of substitutes

C-Seems like it goes hand in hand with A, but not from a standpoint of substitutes. It limits prices charged in that you do not want to attract many new competitors. I assume that limits profitability.

Was C the right answer?

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