Multiple choice

If your direct competitor lowers the price of similar goods and services, demand would...

  1. Increase for your goods/services

  2. Decrease for your goods/services

  3. stay the same, but price would drop

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

When a direct competitor lowers prices, consumers typically shift their demand toward the cheaper alternative. This results in a decrease in demand for your own goods or services, assuming they are substitutes.

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