Increases the demand for substitutes for fast-food meals
Raises the prices of fast-food meals
Increases the supply of fast-food meals
Increases the demand for fast-food meals
Answer is Right!
Answer is Wrong!
The correct answer is: C. Increases the supply of fast-food meals.
An increase in the number of fast-food restaurants increases the supply of fast-food meals. This is because there are now more restaurants that are able to produce and sell fast-food meals. This increase in supply will lead to a decrease in the price of fast-food meals, as there is now more competition among restaurants to sell their meals.
The other options are incorrect because:
- Option A: An increase in the number of fast-food restaurants does not necessarily increase the demand for substitutes for fast-food meals. This is because people may still prefer to eat fast food, even if there are more options available.
- Option B: An increase in the number of fast-food restaurants does not necessarily raise the prices of fast-food meals. This is because the increase in supply will lead to a decrease in prices, as there is now more competition among restaurants to sell their meals.
- Option D: An increase in the number of fast-food restaurants does not necessarily increase the demand for fast-food meals. This is because people may still prefer to eat other types of food, even if there are more fast-food restaurants available.