In 1 or 2 sentences, describe the effect of competition on price.

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17-04-2015
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In 1 or 2 sentences, describe the effect of competition on price.

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meerkat18 meerkat18 · Answer 1 · 2016-09-21T05:50:33-04:00

meerkat18 meerkat18

21-09-2016

The effect of the competition of price shifts the balance between supply and demand. For example, given an equilibrium quantity, when the price is high, this results to a surplus of quantity. Competition on price makes the market productive and the consumers get to choose many options.

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