-Refer to Figure 9.1.How would the profit-maximizing sales quantities for bats and gloves change if the price of bats was $270?
A) The quantities of bats and gloves will remain unchanged
B) The quantity of gloves will increase while the quantity of bats will decrease
C) The quantity of bats will increase while the quantity of gloves will decrease
D) The quantities of bats and gloves will both increase

Question

-Refer to Figure 9.1.How would the profit-maximizing sales quantities for bats and gloves change if the price of bats was $270?
A) The quantities of bats and gloves will remain unchanged 
B) The quantity of gloves will increase while the quantity of bats will decrease 
C) The quantity of bats will increase while the quantity of gloves will decrease 
D) The quantities of bats and gloves will both increase

Quizplus · Accepted Answer

The quantity of bats will increase while the quantity of gloves will decrease.When the price of bats increases, the profit-maximizing quantity of bats will decrease. This is because the higher price will make bats less attractive to consumers, so the producer will need to sell fewer bats to maximize profits. The profit-maximizing quantity of gloves will increase because the higher price of bats will make gloves a more attractive substitute for bats.