Question

Assume that you are the owner of the only music store in town because your town limits the number of shops. The town now wants to repeal that law and allow more music stores to open. Describe what actions you could take as a business owner once the law is repealed?

Answer 1

i would trh to expand my buisness and rnovate my shop as much as possible...i may even open another branch in some other area.........and try to put some sale so that i can increase my costomers........

hope it helped...plz mark as brainlist

Answer 2

From a business standpoint,such situation can lead to two situations:-1) Price cut or reduction of the products and 2) reduction in quantity or supply of products.

Explanation:

Now,allowing more musical stores to open business implies higher market competition for musical products.As a consequence,the market price for the products will consequently decrease and the original store will be compelled to reduce the price of its products to retain and gain customers as they have more choice of stores now.This will enable the store to maintain or increase its sales revenue amidst higher competition.

Additionally,the store can consider cutting down on the quantity of production or supply without reducing the price.This will automatically reduce the market price due to reduced supply in the market and the store can retain its existing customers and gain new ones due to lower price.