Luna Automobile Inc. is a popular luxury car manufacturer. As the luxury car market is already saturated, it has started a new line of affordable cars that would appeal to the lower income groups. This new line of cars fares much lower when it comes to durability. This is an example of _________.

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Answer:

It is an example of scheduled obsolescence.

Explanation:

The new line of affordable cars does appeal to lower-income groups, however, they are not a safe long term investment.

In the industry it became common to sell low price products (that appeals to the masses) that also have low durability, thus forcing the buyer to purchase a newer model in a short amount of time.

This process takes advantage of the fact that the low-income part of the population doesn't have the means to make a long term investment on a higher quality product.

This process is called scheduled obsolescence, for its intentionally lack of durability.

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