Answer the Following Questions Using the Information Below:
Bright Lights

question 197

Multiple Choice

Answer the following questions using the information below:
Bright Lights Company manufactures small flashlights and is considering raising the price by 50 cents a unit for the coming year.With a 50-cent price increase,demand is expected to fall by 3000 units.
$$\begin{array} { l r r } & \text { Currently } & \text { Projected } \\\text { Demand } & 20000 \text { units } & 18000 \text { units } \\\text { Selling price } & \$ 4.50 & \$ 5.00 \\\text { Incremental cost per unit } & \$ 3.00 & \$ 3.00\end{array}$$
-If the price increase is implemented,operating profit is projected to:

• A)decrease by $4500.
• B)decrease by $4000.
• C)increase by $6000.
• D)increase by $4000.

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Definitions:

Behaviourism

A branch of psychology focused on studying and modifying observable behaviors.

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