Question

which situation is the best example of competition in an economic system? a restaurant just opened down the block from a movie - theater, and the restaurant owner hopes to attract diners after each movie. a federal agency has been created to monitor the production and distribution of food supplements. a small cd store slashed its prices to attract customers from a larger store that sells cds and dvds. a store that sells sneakers has offered a special deal to customers from a nearby health club.

Explanation:

Competition in an economic system involves businesses vying for the same customers. The small CD - store slashing prices to attract customers from a larger store is a clear example of competition as it's a direct attempt to gain market share from a rival. The restaurant near the movie - theater is not directly competing with other restaurants in the example. The federal agency is a regulatory body, not a competitive entity. The sneaker store's deal with health - club customers is a marketing strategy, not competition.

Answer:

A small CD store slashed its prices to attract customers from a larger store that sells CDs and DVDs.