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:

Operating Expenses

Costs associated with running a company’s day-to-day operations, such as salaries, rent, and utilities, but not including cost of goods sold.

Cost of Goods Sold

The immediate financial outlays associated with the creation of a company's sold products.

Net Sales

The amount of a company's gross sales minus returns, allowances, and discounts.

Operating Income

A measure of the profit a company generates from its operational activities, excluding revenues and expenses from non-operational activities.