At a Price of $2,000 Per Unit,the Demand for Rancho

question 108

Multiple Choice

At a price of $2,000 per unit,the demand for Rancho 60 mountain bikes from Cloyd's Inc.is 300 units,which is the number of bikes they manufacture every year.If the marketing managers at Cloyd's Inc.decide to sell each bike at a price lower than $2,000 per unit,_____.

• A) a shortage of bikes will be created
• B) the number of bikes produced will increase drastically
• C) an inelastic demand for the bikes will be created
• D) the demand for and the supply of the bikes will attain equilibrium

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Definitions:

Financial Reporting

Crafting statements that expose a business's financial well-being to its managers, investors, and governmental entities.

Product Costs

Costs that are directly related to the manufacturing of products, including direct materials, direct labor, and manufacturing overhead.

Financial Reporting

The practice of formulating disclosures that present an enterprise's fiscal health to its leadership, stakeholders, and state authorities.

Product Costs

Expenses directly incurred in the creation of a product, including raw material, labor, and manufacturing overhead costs.