Question

As Rosa considers where to build her new bakery, she also factors in the number of other bake shops in the area. If she builds in an area where she is one of many bakeries, she will be forced to charge lower prices in order to compete with the other bakeries already in the neighborhood. This is an example of which economic theory?

Answer 1

Answer: I'm not completely sure but I think she will need to lower prices for more people to come and slowly rise prices

Explanation: and yes, this is an example of economic theory. p.s. I'm pretty sure but don't take my word for granted.