Question

A developer builds 100 new homes next to an old grocery store. Which would most certainly result? cross out A) The price of the store’s products would increase. cross out B) The market demand curve related to the store’s products would shift. cross out C) The demand for the store’s products would become inelastic. cross out D) The store would decrease its total revenue.

Answer 1

Answer: b

Step-by-step explanation:

Answer 2

B

Step-by-step explanation:

As more consumers move in, the demand curve for the store's products would increase (shift to the right) as it is influenced by factors other than price.

While option A could be an eventual outcome, it would only follow an increase in Demand. Note that a change in price would result in movement along the curve.

There is not sufficient information to support Option C

Option D is wrong because higher demand would result in higher revenues, assuming all else remains constant.