Question

Oldtown has only two grocery stores, but that is about to change. Coming this fall, two new grocery store chains are opening that focus on offering a wide variety at low prices. What impact will this have on the people of Oldtown?

A) At least one of the grocery stores will go out of business due to increased costs.
B) The local government should increase taxes on groceries to help pay for new infrastructure.
C) The supply of groceries in Oldtown will increase, but demand will decrease, leading to a shortage in basic necessities.
D) This would increase competition among the grocery stores, which should lead to higher productivity and lower prices for consumers.
Eliminate

Answer 1

The correct answer is letter D.

Explanation: In this case the two grocery wants to sell their products, as a result they are gonna represents many products, because they are two. And they of course wants to sell their products, so they are gonna lower the prices for sell.

The consumers can buy more, with a lower price.