An increase in the number of fast-food restaurants

Question

Quizplus · Accepted Answer

An increase in the number of fast-food restaurants increases the supply of fast-food meals. This is because there are more options for consumers to choose from, and more restaurants are producing fast food. This does not necessarily raise the price of fast-food meals or increase the demand for substitutes, although it may have some effect on these factors. While there may be an increase in demand for fast-food meals, this cannot be determined solely by the increase in the number of restaurants.

An Increase in the Number of Fast-Food Restaurants