What does greater competition among sellers usually lead to a lower prices and fewer choices requires the lower prices and more choices for buyers see higher prices and fewer choices for buyers D higher prices and more choices
Greater competition among sellers usually leads to lower prices and more choices for buyers. So, the correct option is: D) lower prices and more choices.
When there is more competition in a market, sellers are motivated to attract customers by offering competitive pricing and a wider variety of products or services. This increased competition puts downward pressure on prices, as sellers strive to undercut each other. They may also differentiate themselves by offering more choices to attract consumers.
To understand why greater competition leads to lower prices and more choices, we can consider the basic principles of supply and demand. When there are numerous sellers vying for the same customers, the supply of goods or services increases relative to demand. This excess supply puts sellers in a competitive position, forcing them to lower prices to attract buyers. Additionally, in order to stand out from their competitors, sellers may offer a broader range of options to cater to different consumer preferences.
On the other hand, if there is limited competition among sellers, they have more control over pricing and choices, which can result in higher prices and fewer choices for buyers. This is because sellers can act in a monopolistic or oligopolistic manner, where only a few sellers dominate the market. In such cases, sellers have the ability to set prices higher and restrict the range of options available to buyers, as there are limited alternatives.
In conclusion, greater competition among sellers generally benefits buyers by leading to lower prices and more choices.