Question

A new dog toy is introduced in pet stores in April for $19.99, but by December the toy is being sold for $4.99. According to the law
of supply and demand which is most likely to be true about the dog toy?

Answer 1

Answer:

Explanation:

That those willing to buy the toy are not numerous enough to justify the space needed to store the toys.

In other words the supply is much more than the demand and the two won't reach equilibrium until the price drops down to 4.99. Then new customers will be more willing to buy it as a secondary gift for some child.