Imagine your town has a local bike store called Brianna’s Bikes. After years of good business, a larger competing chain store opens up across the street. This new store, David’s Bike Depot, offers specials such as a family pack of helmets for a lower price and free bike tune-ups with a minimum purchase.
Use the passage to answer the question.
Which positive effects would likely result from this new competition? Select the two correct answers.
(1 point)
Responses
fewer choices
fewer choices
better prices
better prices
higher quality
higher quality
higher wages
The two correct answers are:
1. Better prices: Competition often leads to lower prices as businesses try to attract customers with more affordable options.
2. Higher quality: In order to stay competitive, businesses may strive to improve the quality of their products or services to differentiate themselves from their competitors.
The two likely positive effects that would result from this new competition are:
1. Better prices: The competing chain store, David's Bike Depot, is offering specials such as lower prices for a family pack of helmets. This would likely lead to price competition and potentially lower prices for bike-related products in the town.
2. Higher quality: In order to compete with the larger chain store, Brianna's Bikes may be motivated to improve the quality of their products and services. This could result in higher-quality bikes and accessories being offered to customers.