What effect would a reduction in the Canadian selling price of Japanese made cars have on the Canadian demand for Canadian made cars?
A)The demand would increase.
B)The demand would decrease.
C)No effect, because price changes affect quantity demanded, not demand.
D)We cannot tell unless we know what happened to the price of Canadian made cars.

Question

Quizplus · Accepted Answer

A reduction in the selling price of Japanese made cars would make them more attractive to Canadian consumers, which could lead to a decrease in demand for Canadian made cars.

What Effect Would a Reduction in the Canadian Selling Price