 The test consists of observing whether a small increase in price (in the range of 5 to 10 percent) would provoke a significant number of consumers to switch to another product (in fact, substitute product).In other words, it is designed to analyse whether that increase in price would be profitable or if, instead, it would just induce substitution, making it unprofitable.In general, one uses databases from the firms which may include data on variables such as costs, prices, revenue or sales and over a sufficiently long period (generally over at least two years).