Question

A car manufacturer rolled out a new car priced at $10,000, but not many people bought it. In the context of supply and demand, how might the price of the car be affected?

A.The price will become $12,000.
B.The price will become $8,000.
C.The price will remain $10,000.

Answer 1

For Plato the answer is B - 8,000

Explanation:

At the current cos of 10,000 the demand is low. So if they decrease the price the demand will increase.

Answer 2

The correct answer is B.The price will become $8,000.

If there's no demand for it, the price drops which might create demand for it. It's better for him to earn less money than no money at all. If the price rises, the demand would drop even more so he would never sell it.