$40,000 37,000 $37,000 Du 35,000 900 Cars per week (a) Flexible price 700 900 1150 Cars per week (b) Fixed price Refer to the above diagram (b), assume that DL represents low demand for the Turbo-car,...

Q3

Extracted text: $40,000 37,000 $37,000 Du 35,000 900 Cars per week (a) Flexible price 700 900 1150 Cars per week (b) Fixed price Refer 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's optimal output level is 900 cars per week. If the Fancy Auto Company has a fixed price policy of $37,000 per vehicle: Multiple Choice the 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.