Impact of Cars with Built-in GPS Navigation on GPS Navigation Devices Market
How will the increasing number of cars with built-in GPS navigation impact the market for GPS navigation devices?
Multiple Choice
A. Demand for GPS navigation devices will decrease.
B. Demand for GPS navigation devices will increase.
C. The quantity demanded of GPS navigation devices will decrease.
D. The quantity demanded of GPS navigation devices will increase.
Answer:
The market for GPS navigation devices is likely to be impacted by the increasing number of cars that include GPS navigation in their computers. Here, the correct option is B. Demand for GPS navigation devices will increase.
As more cars include GPS navigation in their computers, consumer preferences for stand-alone systems will decrease. This shift in consumer preferences will lead to a decrease in the demand for GPS navigation devices. Consequently, the quantity of GPS navigation devices demanded in the market will also decrease.
With the decrease in the quantity of GPS navigation devices demanded, prices for these devices are likely to increase due to the law of supply and demand. This increase in prices may have a negative impact on the market for GPS navigation devices, as consumers might explore other alternatives to fulfill their navigation needs.