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 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. A federal agency has been created to monitor the production and distribution of food supplements. d. A state agency has been created to monitor the production and distribution of sports drinks.