Suppose Ford, GM, and Dodge make the majority of pick-up trucks sold in the United States If they all sell for approximately the same price, and Ford offers a $2,000 rebate on new truck sales, what can Ford expect to see?

Question

Quizplus · Accepted Answer

Offering a rebate can make Ford's trucks more attractive to buyers, potentially increasing its sales. Competitors like GM and Dodge are likely to respond to this move to maintain their market share, possibly through similar discounts or other promotions.

Suppose Ford, GM, and Dodge Make the Majority of Pick-Up