When Toyota introduced its 2010 Prius,it announced that the average retail price of the 2010 model would be lower than the average retail price was for the equivalent 2009 model.Which of the following would explain the price differential?
A)The demand for the Prius had increased,and the supply of the Prius remained unchanged.
B)The supply of the Prius had decreased,and the demand for the Prius remained unchanged.
C)The demand for the Prius had decreased,and the supply of the Prius had increased.
D)The demand for the Prius had increased,and the supply of the Prius had decreased.

Question

Quizplus · Accepted Answer

The price of a product typically decreases if the demand for it decreases while its supply increases, as this creates a surplus of the product in the market, leading to lower prices to stimulate sales.

When Toyota Introduced Its 2010 Prius,it Announced That the Average