Managers of Wendy's fast-food restaurants keep track of prices at competitors such as McDonald's, Burger King, and Arby's, knowing that a decrease in the prices at these other fast-food restaurants will

It will affect Wendy's fast - food sales negatively.

Explanation:

Especially if the competitors have larger market share than Wendy's Fast-food. There will be a switch in consumers from Wendy's Fast-food to it's competitor, therefore reducing its sales and invariably reducing it's profit.

Therefore, Wendy's fast-food should be in tune with price fluctuation of it's competitors especially if it is a price decrease.