Refer to the Above Diagram (B), Assume That DL Represents

question 36

Multiple Choice

Refer to the above diagram (b) , assume that DL represents low demand for the Turbo-car, DM represents the medium level of demand and, DH represents the high level of demand for Turbo-car and, Fancy Auto's optimal output level is 900 cars per week.If the Fancy Auto Company has a fixed price policy of $37,000 per vehicle:

• A)the quantity demanded will be 900 cars per week if the demand is D_L.
• B)the quantity demanded will be 700 cars per week if the demand is D_L.
• C)the quantity demanded will be 1150 cars per week if the demand is D_L.
• D)the quantity demanded will be 1150 cars per week if the demand is D_M.

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