Substitute goods are characterized by:

Substitute goods are characterized by the ability to be used interchangeably by consumers, particularly when the price of one good increases. When the price of a substitute rises, consumers tend to switch their consumption to the other good that serves the same purpose, thereby increasing its demand. This behavior stems from the desire to maximize utility while minimizing expenditure, leading consumers to opt for alternatives when prices change.

For instance, if the price of coffee rises significantly, consumers may decide to purchase more tea instead, viewing it as a viable substitute. This interchanging ability highlights how substitutes function in the market based on price fluctuations.

The other options relate to aspects of economics that do not accurately describe the characteristic dynamics of substitute goods. The notion of concurrent usage pertains more to complementary goods rather than substitutes, which serve a similar function. While it is true that the price of substitutes can affect demand, the inverse relationship detailed in the second choice is not fully accurate because it does not capture the direct mechanism through which substitutes function. Lastly, the idea of similar production processes focuses more on the competitive aspect of the market rather than the consumer perspective, which is central to defining substitutes.