Suppose that a food delivery service cuts its commission. How would consumers respond and how would they benefit?

Question

Quizplus · Accepted Answer

When a food delivery service cuts its commission, it often leads to lower prices for consumers. This can result in consumers ordering more food deliveries because of the reduced cost (A). They benefit directly from the lower commission on orders they would have placed anyway, effectively saving money on each order (B). Additionally, as consumers are likely to order more due to the lower prices, they also benefit from these additional orders, either by enjoying more variety or by making more frequent purchases than they would have otherwise (C).

Suppose That a Food Delivery Service Cuts Its Commission