Suppose that in 2015,12 million cars were purchased at $25,000 each,while in 2016,10 million cars were purchased at $22,000 each.What might have caused this change?

Question

Quizplus · Accepted Answer

A decrease in the price of substitutes (like airplane tickets) can lead to a decrease in demand for the original good (cars), which could explain both the decrease in quantity sold and the decrease in price.

Suppose That in 2015,12 Million Cars Were Purchased at $25,000