Economics 2281 · O Level · Price determination

Price determination — practice question

A city centre has a number of cafés that sell snacks and drinks. A few of these cafés shut down because their owners retire. What is the most likely impact on the prices and profits of the cafés that remain?

  • Aprices decrease, profits decrease
  • Bprices decrease, profits increase
  • Cprices increase, profits decrease
  • Dprices increase, profits increase

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