BMW set to appoint 2nd S'pore dealer - tipped to be Eurokars. German carmaker BMW is poised to appoint a second fully fledged dealer in Singapore in a move seen as fostering competition to boost sales. The current and only BMW dealer here is Performance Motors, which is owned by Malaysian conglomerate Sime Darby. Performance Motors has had the franchise since 1979.

If Performance Motors faces a kinked demand curve and experiences a rise in cost, use a diagram to show the possible effects on price.