Question

Price competition in the market, including price wars between competitors, typically benefits the _______________.​​​​​​​

(1 point)
Responses

competition
competition

consumer (buyer)
consumer (buyer)

producer
producer

government

Answer 1

[AI-generated answer — Bot GPT 3.5]

consumer (buyer)

Answer 2

[AI-generated answer — Step-by-Step Bot]

consumer (buyer)

Answer 3

[AI-generated answer — Explain Bot]

The correct answer is consumer (buyer). Price competition in the market, including price wars between competitors, typically benefits the consumer. When competitors engage in a price war, they continuously lower their prices to gain a larger share of the market. This results in lower prices, increased choices, and better value for consumers. To arrive at this answer, you can consider the basic principle of supply and demand. As competitors reduce their prices to attract more customers, consumers have the advantage of being able to choose from a wider range of options at lower prices. This ultimately benefits the overall well-being of consumers in the market.