Answer to Question #117353 in Microeconomics for Anisha

Question #117353
What effect will the simultaneous launch of a new smartphone and a decrease in the price of a competitor have on the market for smartphones?
1
Expert's answer
2020-05-26T10:13:40-0400

If the company launches a new smartphone on the market, then a higher demand for these products is expected. However, taking into account the fact that when competitors lower the price of a similar model, demand should decrease, then these two events that have occurred simultaneously can lead to a position of gross profit stability.


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