You are planning to open a new Italian restaurant in your hometown where there are three other Italian restaurants
You plan to distinguish your restaurant from your competitors by offering northern Italian cuisine and using locally grown organic produce. What is likely to happen in the restaurant market in your hometown after you open?
A) Your competitors are likely to change their menus to make their products more similar to yours.
B) While the demand curves facing your competitors becomes more elastic, your demand curve will be inelastic.
C) The demand curve facing each restaurant owner becomes more elastic.
D) The demand curve facing each restaurant owner shifts to the right.
C
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For which of the following is the law of one price least likely to hold?
A) Haircuts B) Gold C) US Treasury Bonds D) Petroleum
When a good is nonrivalrous in consumption, then: a. consumption by an additional individual will significantly reduce the benefits derived by others from a public good. b. individuals who refuse to pay for a public good cannot be excluded from benefiting from it
c. consumption by an additional individual does not prevent others from benefiting from a public good. d. individuals who refuse to pay for a public good can be excluded from benefiting from it.
If income changes, that leads to a movement along the money demand curve
a. True b. False
If resource prices are fixed and the selling price rises, then
a. profits will decrease. b. profits will increase. c. profits will remain constant. d. both profits and output will decrease.