Which economic term is best described as products that fulfill similar needs?

The term that best describes products fulfilling similar needs is "substitutes." When two goods are substitutes, an increase in the price of one will typically lead consumers to purchase more of the other good instead. This relationship arises because consumers have the flexibility to switch between these goods based on price changes, availability, or personal preference. Examples of substitutes include butter and margarine or tea and coffee.

Understanding the concept of substitutes is critical in analyzing consumer behavior and market dynamics, especially in terms of pricing strategies and competition among businesses. This knowledge informs businesses on how to position their products effectively against competitors offering similar solutions.