Q3 $40,00037,000$37,000Du35,000900Cars per week(a) Flexible price700 9001150Cars per week(b) Fixed priceRefer 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'soptimal output level is 900 cars per week. If the Fancy Auto Company has a fixed price policy of $37,000 per vehicle:Multiple Choicethe quantity demanded will be 1150 cars per week if the demand is DI.the quantity demanded will be 900 cars per week if the demand is DI.the quantity demanded will be 1150 cars per week if the demand is DM-the quantity demanded will be 700 cars per week if the demand is DL.

option D is correct answer The quntity demanded 700 cars per week if the demand is DL

Answered: (a) Flexible price (b) Fixed price…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6CQQ

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