Question

A company that makes mobile phones introduces a new,faster model that has strong consumer interest.however,the old model is still available.what will most likely happen to the price of the old model ,and why

Answer 1

The correct answer here would be that the price of the old model would fall in order for people to continue purchasing it.

When a new phone model comes out the most common practice is to reduce the price of the older model in order for it to still be a cheaper alternative for the newer model. That way people with smaller budgets would still buy the products from the same company and it would result in a influx of new costumers.

Answer 2

Answer:

a

Explanation:

The price will fall to encourage consumers to continue to purchase it.