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Competition among more shoe sellers will _____ the price of shoes.

A)increase
B)decrease
C)not change

User PeteAC
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2 Answers

2 votes
Shoe sellers will decrease the price of shoes in order to draw in more costumers than the competitor. So the answer is B, decrease.
User Remember Monica
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Answer:

The correct answer is B) decrease.

Step-by-step explanation:

When there is competition, it means that the number of customers is limited. This means that the shoe sellers have to compete against each other for a share of this limited customer base. Since one of the main deciding factor when purchasing shoes for a customer is the price, shoe sellers will try to impact this deciding factor. In order to make their store more appealing to the customer, they will reduce the price of their merchandise and when other shoe sellers will do the same, the price of the shoes will decrease.

User BennyBechDk
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