Assume this is the market for smoothies in ValdostaWhich of the following would happen if one of the major smoothie chains went out of business? (1 point) supply of smoothles would shift right demand for smoothies would decrease price of smoothies would increase all of these would occur
If one of the major smoothie chains went out of business in the market for smoothies in Valdosta, all of the following would occur:
1. Supply of smoothies would shift right: With one major chain out of business, there would be a decrease in the number of smoothie providers in the market, resulting in a decrease in overall supply. The remaining smoothie chains may increase their production to fill the gap left by the closed chain.
2. Demand for smoothies would decrease: The closure of a major smoothie chain could potentially affect consumer perception and confidence in the smoothie market. This could lead to a decrease in demand for smoothies as consumers may be less inclined to purchase them without the presence of a trusted brand.
3. Price of smoothies would increase: With a decrease in supply and potentially lower demand, the price of smoothies would likely increase. As fewer providers are available, they might have more pricing power in the market, leading to higher prices in order to maintain profit margins.
Therefore, all of these scenarios would occur if one of the major smoothie chains went out of business in the market for smoothies in Valdosta.