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American Government

How does creating increased competition, such as free trade zones, impact supply and demand?

A. The price of goods goes up due to an increase in supply
B. The price of goods goes up due to a decrease in demand.
C. The price of goods goes down due to an increase in demand.
D. The price of goods goes down due to an increase in supply.

I'm very confused on this but I know the answer isn't B. Please help.

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  1. Competition doesn't increase demand. What does increase?

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    Ms. Sue
  2. A increase in demand, correct? The way the answer choices are said confuses me a lot and I'm not sure which one even fits that.

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  3. You don't read very well.

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    Ms. Sue
  4. Is it A? That's the only thing that I believe it can be, due to the others not making any sense.

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  5. Competition doesn't increase demand. What does increase?

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    Ms. Sue
  6. A increase in supply

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  7. Yes, the supply increases.

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    Ms. Sue
  8. Thank you a lot. Also sorry, I misread what you said the first time and responded mislead. Thought it said something else but thank you.

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  9. You're welcome.

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    Ms. Sue

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