List prices on new cars do NOT change very often, so
A) the real price of cars is very inflexible.
B) the prices of new cars can only be flexible if there are changes in the cost of materials.
C) price flexibility is not an important feature in the auto market.
D) price flexibility shows up primarily through the negotiations between buyers and sellers.

Question

Quizplus · Accepted Answer

List prices may not change very often, but price flexibility can still exist in the form of negotiations between buyers and sellers. The final price that a buyer pays for a new car can often be negotiated based on factors such as demand, competition, and available incentives. Therefore, the best choice is D as it correctly identifies negotiation as a key factor in price flexibility.

List Prices on New Cars Do NOT Change Very Often