A company that makes mobile phones introduces a new, faster model that has strong consumer interest. However, the old model is still available. What will most likely happen to the price of the old model, and why?
Answers
Answer:
The price will fall to encourage consumers to continue to purchase it.
Explanation:
PLEASE MARK ME AS THE BRAINLIST!!!!!!!!!!!!!!!!!!!!!!
The price of the old model will decrease.
1. A mobile phone company that wants to keep up with the fast-moving digital world, when introduces a new model of mobile phone, it will decrease the price of the old version of the mobile phone.
2. The prices highly depend on the market conditions of demand and supply. Economics is based on this fundamental principle.
3. When the demand for a product increases the prices also increase. Price and supply have an inverse relationship. When the supply of a particular product exceeds the demand of the same in the market, the product happens to be in abundance and the prices automatically decrease.
4. The prices are also lowered to clear the inventory stocks and to focus on different groups of customers.