Question

In one or two sentences, describe the effect of competition on price.

Answer 1

The effect of the competition of price shifts the balance between supply and demand. For example, given an equilibrium quantity, when the price is high, this results to a surplus of quantity. Competition on price makes the market productive and the consumers get to choose many options. 

Answer 2

The effect of competition on price lowers the price of a good or service for example say you where the only business selling shoes across the country you have the advantage of waxing thee prices on these goods because there the only ones in the market but than other producers and competition start selling the same product for a lower price this than faces you with the choice to lower you're prices or close down you're bussines you decide to lower the price, Basically the effect of Price of you're competition made you lower the price of you're products.