The market for smart water is becoming more competitive.The increase in competition in this market is an example of how the market responds to
A)changes in consumer tastes.
B)decreases in income.
C)changes in expected future prices.
D)decreases in the price of carbonated soda (a substitute for the product).

Question

Quizplus · Accepted Answer

The increase in competition in the market for smart water indicates that there is a shift in consumer tastes towards healthier beverage options. As more consumers seek out this type of product, companies are responding by entering the market and competing for market share.

The Market for Smart Water Is Becoming More Competitive