A rise in the demand for restaurant meals is likely to _____ in the long run.

Question

Quizplus · Accepted Answer

An increase in demand for restaurant meals would signal that consumers are willing to spend more on dining out, which would attract more entrepreneurs to open restaurants in the industry to satisfy increased demand. This would increase the supply of restaurants, creating competition that would likely keep prices from rising too much and would reduce economic profits earned by individual restaurants.

A Rise in the Demand for Restaurant Meals Is Likely