Answer :
Competition will eventually make the price of goods and services to equilibrium price.
Competition will make the sellers lower the price so they can attract consumers, which will be very beneficial for the consumers
hope this helps
Final answer:
Competition generally leads to lower prices and better quality for consumers, as sellers aim to attract buyers in a competitive market. However, it can pose challenges for sellers who must adapt to maintain profitability.
Explanation:
The effect of competition on the price of goods and services typically results in lower prices for consumers. When there are more sellers in a market, they strive to offer competitive pricing to attract buyers, which can drive down the cost of goods and services. Furthermore, competition can improve the quality of products as businesses innovate to gain an edge over competitors. This environment can be beneficial for consumers who might enjoy better prices and enhanced product quality. However, for sellers, increased competition can reduce their individual market share and profits, putting pressure on them to cut costs and operate more efficiently.
