When several stores in the same neighborhood sell the same video game system, what will likely happen?
A. The price in the video game will increase
B.the cost of production for video games will increase
C.the price of video games will decrease**
D.the supply of video games will decrease
I thought it was C but I'm not completely sure
Of the choices, C is best. :)
thanks
You're welcome.
The likely answer is C. the price of video games will decrease.
When several stores in the same neighborhood sell the same video game system, competition between them tends to drive prices down. This is because each store aims to attract customers and increase sales. To do so, they may offer discounts, promotions, or competitive pricing. As a result, customers are likely to benefit from lower prices.
To understand why the price of video games will decrease, one must consider the basic principles of supply and demand. When there is a higher supply of a product, such as video game systems, and a relatively stable or even declining demand, stores will need to incentivize consumers to choose their store over others. Lowering prices is a common strategy to attract customers and maintain a competitive edge in the market. Therefore, in a neighborhood with multiple stores selling the same video game system, it is likely that the price of video games will decrease.