If one of the major smoothie chains went out of business, we would expect that the supply of smoothies would shift left. This is because there would be fewer providers in the market resulting in a decreased overall supply of smoothies.
Given the options provided:
- Supply of smoothies would shift right - This is incorrect. The supply would actually shift left (decrease).
- Demand for smoothies would decrease - This is not necessarily true; demand may remain the same or even increase if consumers seek alternatives.
- Price of smoothies would increase - This is likely true; with a decrease in supply and the demand remaining constant, prices would likely rise.
Therefore, the best response to the scenario posed is the price of smoothies would increase.
So, none of the options accurately represents all the effects, but the most relevant outcome is that the price of smoothies would likely increase.