A- in the first scenario the 16gb would drop in price.
b- In the second the price would remian the same to fool consumers into believing that they are getting a bargain.
Typical Business Practise
a new iphone is released which has 32gb memory as opposed to the old one which had 16gb. If the price of both models are the same what would happen to the market of the old model? What would happen if the new one was more expensive?
2 answers
Well yes, there would be some saps who pay full price fot the 16gb. However, I believe most consumers are savy enough to recognize the difference. So, the quantity of 16gb models sold would certainly drop by a bunch.