-Refer to the above diagram (b),assume that D_L represents low demand for the Turbo-car,D_M represents the medium level of demand and,D_H represents the high level of demand for Turbo-car and,Fancy Auto's optimal output level is 900 cars per week.If the Fancy Auto Company has a fixed price policy of $37,000 per vehicle: A) the quantity demanded will be 900 cars per week if the demand is D_L. B) the quantity demanded will be 700 cars per week if the demand is D_L. C) the quantity demanded will be 1150 cars per week if the demand is D_L. D) the quantity demanded will be 1150 cars per week if the demand is D_M.

Question

Quizplus · Accepted Answer

If the demand is D_L, the quantity demanded will be lower than the optimal output level of 900 cars, which aligns with 700 cars per week.

-Refer to the Above Diagram (B),assume That DL Represents Low

-Refer to the Above Diagram (B),assume That D_L Represents Low