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

question 47

Multiple Choice

At a price of $2,000 per unit,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300 units,which is same as the number of bikes manufactured 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 being made will increase drastically
• C)an inelastic demand for the bikes will be created
• D)​the demand and supply for the bike will attain equilibrium

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Definitions:

Economic Problem

The fundamental challenge of efficiently allocating limited resources to satisfy unlimited wants and needs.

Limited Resources

The finite availability of resources, such as land, labor, and capital, which can restrict economic growth and development.

Unlimited Wants

The economic concept that humans have an endless number of desires for goods and services, even if resources for fulfilling those desires are limited.

Entrepreneurship

The act of starting and managing a business venture, along with any of its risks, in order to make a profit and innovate in the market.