One of the reasons that there are more competitors in the restaurant industry th

Question

One of the reasons that there are more competitors in the restaurant industry than in the music streaming industry is that restaurants

One of the reasons that there are more competitors in the restaurant industry than in the music streaming industry is that restaurants O A. unlike music streaming companies, do not have significant economies of scale. O B. have more elastic demand for their product compared to music streaming companies C. O D. unlike music streaming companies, have to abide by government sanitation rules. have to cater to a variety of consumer tastes while music streaming companies do not.

Explanation / Answer

More competitors in the restaurant industry than in music industry implies demand or supply to respond effectively to change in price which means demand will be more elastic in the restaurant industry than in the music streaming companies.

the correct option is (B)

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