When Japanese carmakers attacked the existing U.S. automobile market by first offering small fuel-efficient cars, and then leveraging their low-cost and high-quality advantages into high-end luxury segments, they were engaging in

A. regressive innovation.
B. radical innovation.
C. disruptive innovation.
D. architectural innovation.

Option C.

Disruptive innovation

Explanation:

Disruptive innovation refers to the release of a product that disrupts an existing market, and creates a new one instead.

The automobile market in the U.S was filled with a lot of expensive cars at a certain point in time. Owning a car was a luxury that many people could not afford.

The Japanese car makers came with cheaper cars under the "Lexus" brand name, which could compete with the more expensive ones in terms of power and durability. This caused a disruption in the US automobile market. This type of innovation is what lead to the success of Japanese cars in the United States

C) disruptive innovation.

Explanation:

The entrance of Japanese carmakers into the American market was shaped not only by their strategies but also by import quotas set by different presidents.

Japanese companies were always disruptive by offering differentiated products. First they offered fuel efficient cars when the Arab oil embargo and the energy crisis hit the US. Then when president Reagan imposed an import quota, I believe it set the total amount of imported Japanese cars to 1.68 million per year, Honda started building ts cars in America. Soon Toyota followed and the rest followed a few years later.

Then Japanese cars were no longer only fuel efficient cars, the Accord became the best family sedan in the country. Soon the Camry entered the ring and American manufacturers were responseless. Finally Ford came up with the Taurus in the early 90s, but then again Japanese carmakers were quick to respond with an avalanche of luxury cars like Lexus and Accura, then Infiniti.

They just kept on disrupting the market over and over again. When cars were not enough, the CRV and Rav4 showed up, and now we all drive SUVs. The only segment that Japanese carmakers do not lead is pickup trucks. They tried to displace American pickup trucks but failed.

If a resource is scarce, you will not want to use as much of it, therefore you learn to settle with the small amount and deal with the amount it supplies.

This helps you save money because it is scarce, so you will not need  much of it.