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

Question

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

Quizplus · Accepted Answer

An increase in demand for restaurant meals signals that consumers are willing to spend more on dining out. This provides an incentive for entrepreneurs to enter the market and start new restaurants, which will increase the number of restaurants in the industry in the long run. This will ultimately lead to increased competition among restaurants which may drive down prices and profits, but it will not necessarily result in increasing losses for individual restaurants or decreasing the number of restaurants. Therefore, the best choice is D - increase the number of restaurants in the industry.

A Rise in Demand for Restaurant Meals Is Likely to _____