Imagine your town has a local bike store called Brianna’s Bikes. After years of good business, a larger competing chain store opens up across the street. This new store, David’s Bike Depot, offers specials such as a family pack of helmets for a lower price and free bike tune-ups with a minimum purchase.

Question

Question
Use the passage to answer the question.
Which positive effects would likely result from this new competition? Select all that apply.
Responses

fewer choices
fewer choices

better prices
better prices

higher quality
higher quality

higher wages

Answer 1

The positive effects that would likely result from the new competition include:

• better prices: The presence of a competing store may drive down prices as businesses compete for customers.

• higher quality: To remain competitive, Brianna’s Bikes may improve their product offerings and services, leading to higher quality options for consumers.

These are the likely positive effects stemming from the new competition. "Fewer choices" and "higher wages" do not directly result from the competition in this context.