Consider two competing motorcycle manufacturers, Ducati and Yamaha. If Ducati lowers the price of its motorcycles, we can expect:

Question

Quizplus · Accepted Answer

If Ducati lowers the price of its motorcycles, it is likely to attract more customers, who would have otherwise purchased Yamahas. This would lead to a decrease in the demand for Yamahas, which would cause the demand curve for Yamahas to shift to the left, resulting in a lowering of the price of Yamahas. Therefore, the correct answer is D.

Consider Two Competing Motorcycle Manufacturers, Ducati and Yamaha