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

question 144

Multiple Choice

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.

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Definitions:

Retirement Portfolio

A collection of financial assets specifically designed and managed to support an individual's financial needs in retirement.

Sheltered Investment Income

Investment income that is protected from taxes by being placed in certain types of accounts or investments, like an IRA or a municipal bond.

Nominal Value

The face value of a financial instrument, such as a bond or stock, as stated by the issuer, without accounting for inflation or market value changes.

Unsheltered Investment Income

Income from investments that is not protected from taxes, meaning it is fully exposed to taxation.