What might happen to the sales of a car if its producer announced that its new engine emits no pollution, was more powerful than previous engines, and would cost the same?

1 Answer
Alan P.
Feb 4, 2016

The number of car sales would be expected to increase.

Explanation:

Since most people would consider non-pollution and more power positive advantages and if the cost remained the same, there were no negative advantages, more people would be likely to purchase this car.

There (of course) could be compensating factors that might mitigate this expectation; such as:

  • competitor response: matching or exceeding non-pollution and/or power; price reductions.
  • market saturation
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