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AfilCa [17]
2 years ago
11

The local grocery store in a small city is the only option for its residents, so it has a monopoly on the grocery business there

. When the population of the city grows and demand for groceries increases, what is the grocery store most likely to do? Group of answer choices
Social Studies
1 answer:
aleksandrvk [35]2 years ago
4 0

Answer:

limit output but let the prices rise

Explanation:

Based on the information provided within the question it can be said that the most likely course of action would be to limit output but let the prices rise. This is because in basic economics an increase in demand without an increase in supply causes prices to rise. Therefore by limiting output you make sure everyone is able to purchase but prices will still rise because of the lack of supply.

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