An increase in the number of fast- food restaurants

Question

Quizplus · Accepted Answer

An increase in the number of fast-food restaurants would increase the supply of fast-food meals, as there would be more options available for customers to choose from. It would not necessarily increase the demand for fast-food meals, as that would depend on other factors such as consumer preferences and income. It would also not necessarily increase the demand for substitutes, as again, that would depend on individual consumer preferences. Finally, it would not necessarily raise the price of fast-food meals, as increased competition among fast-food restaurants could potentially lead to lower prices.

An Increase in the Number of Fast- Food Restaurants