GRE Text Completion Question 418
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Source: XDF
To raise the price a firm may charge for its product is (i)_____the availability of close substitutes for the product. If a firm attempts to charge a higher price—a supracompetitive price—consumers will turn to other firms able to supply substitute products at competitive prices. However, supracompetitive prices often (ii)_____consumers' welfare because such prices force some consumers to buy a less attractive mix of products than they would ordinarily buy. Moreover, if a firm provides (iii)_____the products actually or potentially available, customers may find it difficult to buy from alternative suppliers. Consequently, a firm with a large share of the relevant market of substitutable products may be able to raise its price without losing many customers.
| Blank(i) | Blank(ii) | Blank(iii) |
|---|---|---|
| A constrained by | D revive | G complements of |
| B prompted by | E reduce | H a substitute of |
| C associated with | F maintain | I a large percentage of |