The smallest price decrease, 4.9 percent, will be on the 535i model, which will sell in 1990 for $41,500.
Ms. Riso said the price decrease succeeded in increasing the company's share of the market.
Note that the crosshatched trapezoid area is the welfare gain to the workshare market, given the price decrease they experience, before the shift volume arrives.
"There is nothing better than a relative price decrease."
Bennett replied that price decreases were inevitable in the face of a global oversupply of 400 million bushels.
However, even a large price decrease will gain only a few customers because such an action will begin a price war with other firms.
"Our view of what we're seeing here is not so much a price decrease, but a technology and performance increase," he said.
This 'permanent' price decrease came after several rounds of Alibre's experimenting with packages and pricing.
Yesterday's price decreases were largest in contracts for delivery next month.
Without the export subsidies some of the surpluses would remain on the EU internal market, which would lead to a further price decrease.