BUS 120 Quiz 2 - Answers on quiz PDF

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BUS 120 Quiz 2 1. In what ways would a health food restaurant on Maui be impacted by weather and temperature in California and Florida? A health food restaurant on Maui would be impacted by California and Florida weather and temperatures if they do not buy their resources locally. Depending on what the type of weather change is happening in these states this restaurant will be able to purchase a limited amount of supplies or an abundant amount of supplies. Also, price will change going up or down. The way the supply curve works is as prices rise, the quantity that sellers are willing to supply also rises. The way the demand curve works is as price drops, more people are willing to buy. 2. When is more competition good? When is less competition good? More competition is good in a monopoly. In a monopoly one supplier dominates a market, can control prices, and blocks out other competitors. Monopolies can be natural as companies innovate or markets evolve or by government mandate. When less competition is good is in a situation called oligopoly is created. Customers have some choice, but not as many choices as in monopolistic competition....