a company that makes mobile phones introduces a new, faster model that has strong consumer interest…

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?\nthe price will fall to encourage consumers to continue to purchase it.\nthe price will rise to encourage the producer to make more old models.\nthe price will fall to discourage the producer from making more old models.\nthe price will rise to encourage consumers to buy both models in equal amounts.

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?\nthe price will fall to encourage consumers to continue to purchase it.\nthe price will rise to encourage the producer to make more old models.\nthe price will fall to discourage the producer from making more old models.\nthe price will rise to encourage consumers to buy both models in equal amounts.

Answer

Brief Explanations:

When a new, more - appealing model is introduced, demand for the old model decreases. To maintain sales of the old model, producers typically lower its price to make it more attractive to consumers.

Answer:

The price will fall to encourage consumers to continue to purchase it.