Multiple Choice
Crisps and Smith's are the only two bakeries that sell cookies in a small community.Crisps sells butter cookies,while Smith's sells chocolate cookies.Which of the following will happen if Smith's lowers its price for cookies slightly below Crisps's price?
A) Crisps will lose all its customers to Smith's.
B) Smith's will lose all its customers to Crisps.
C) Crisps will face a lower demand for its cookies.
D) Smith's will face a lower demand for its cookies.
Correct Answer:
Verified
Correct Answer:
Verified
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