As supply is high and competition is keen, this is almost like
Perfect competition. All supermarkets know each other's price and
will change theirs accordingly. Consumers have a wide variety as
their goods are homogeneous. This consumers will buy from the
supermarket that hasthe cheapest good. however, some consumers will
continue to buy from a more expensive supermarket if they have
brand loyalty.
when sheng shiong and ntuc are nearby, it suits the consumer as it
gives him more choices and cheaper prices.
