If U.S. auto manufacturers cut the prices of their vehicles to sell a greater quantity, buyers may assume that the lower price implies _____________ compared to foreign manufactured vehicles.

Question

Quizplus · Accepted Answer

Buyers may perceive the lower price of U.S. auto manufacturers' vehicles as an indication of lower quality, especially in comparison to foreign manufactured vehicles, due to common assumptions that price correlates with quality.

If US Auto Manufacturers Cut the Prices of Their Vehicles to to Sell