In a Competitive Market,if One Firm Raises Its Price Relative

question 51

Multiple Choice

In a competitive market,if one firm raises its price relative to the other firms in the market,consumers are willing to go to another firm because

• A) the products are similar,which makes them complements.
• B) the products are similar,which makes them substitutes.
• C) there are many sellers in the market selling different items.
• D) consumers can get more producer surplus by going to a different firm.
• E) consumers can set the price they want to pay.