Identify if the following actions will raise or lower the cost of AJ’s watch. A new company offering a similar smartwatch for a lower price.
Lower
Raise
Identify if the following actions will raise or lower the cost of AJ’s watch. A new company offering a similar smartwatch for a lower price
Share
The action will lower the cost of AJ’s watch.
Explanation: When a new company introduces a similar smartwatch at a lower price, it creates competition in the market. This often leads existing companies, like AJ’s, to lower their prices to attract customers and remain competitive. Therefore, the introduction of a cheaper alternative typically drives market prices down.