Which of the following statements about the threat of substitute goods is true?

The correct answer highlights that the presence of substitute goods typically reduces the sales of existing products. When consumers have alternatives that can fulfill the same need or demand, they may choose to switch from one product to another. This competition from substitutes exerts pressure on the existing products to either improve their offerings, lower prices, or enhance marketing efforts to retain customer loyalty.

Substitutes can significantly impact a company's market share, as they offer consumers more choices and can lead to price sensitivity. This dynamic illustrates the importance of innovation and adaptability in product development to maintain competitive advantage in the marketplace.

The other statements do not accurately reflect the economic principle surrounding substitute goods. They do not enhance sales opportunities or guarantee market stability, nor do they promote overall market growth. Instead, they underscore the disruptive nature of substitutes in existing markets, making option B the most accurate in conveying the implications of substitute goods on sales.