What affect will the release of the new Mercedes E-Class sedan have on last year's models that are still on the dealers' lots? Use supply and demand concepts to do your analysis.
A) The arrival of the new E-Class would lead to a decrease in demand for last year's model and their prices would fall.
B) The arrival of the new E-Class would cause the demand for the older model to fall to almost zero.
C) The arrival of the new E-Class would lead to an increase in demand for last year's model, and their prices would rise.
D) The arrival of the new E-Class would lead to an increased supply of last year's model, and their prices would fall.
Correct Answer:
Verified
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