Suppose that in 2006, 8 million cars were purchased at $15,000 each, while in 2007, 10 million cars were purchased at $12,000 each. What might have caused this change?

Question

Quizplus · Accepted Answer

An advance in automobile manufacturing technology could lead to a decrease in production costs, allowing manufacturers to sell cars at a lower price, which could increase the quantity sold.

Suppose That in 2006, 8 Million Cars Were Purchased at $15,000