Final answer:
The correct answer is option A. substitutability.
Step-by-step explanation:
An example of substitutability is when employees are replaced by technology to produce a product more cheaply. This concept refers to the interchangeability between goods, services, or resources that allows an unavailable or inferior resource to be replaced by an alternative, which may be superior. The idea of substitutability is integral in understanding economic dynamics such as efficiency, scarcity, and demand shifts.
For instance, when a substitute for low-skill labor becomes available due to technological advancement, the demand for low-skill labor shifts to the left, from Do to D1. On the other hand, the demand for high-skill labor, which might complement the new technology, may shift to the right as it becomes more valuable.