Question

In three to four sentences, explain the effect of competition on the price of goods and services and whether or not this is a good thing for consumers.

Answer 1

The effect of competition on the price of goods and services is important for consumers. When the prices in a market lower it's obviously a good thing for consumers because they're the one buying the product. If there are two companies selling the same product the company with the cheaper product will most likely be more successful.

Answer 2

Competition and the price of goods and services have a direct relationship. If there is more competition in a specific market then prices tend to lower; this is a good thing for consumers. For example; two companies are competing to sell more cell phones than their rival. If one company figures out a way to lower production costs and sales, the other will soon follow to keep up with the competition.