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

Use the passage to answer the question.

Which positive effects would likely result from this new competition? Select the two correct answers.

(1 point)
Responses

fewer choices
fewer choices

better prices
better prices

higher quality
higher quality

higher wages

Answer 1

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

• better prices
• higher quality

The presence of a competing store often leads to improved prices and quality as businesses strive to attract and retain customers.