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:
A) the quantity demanded will be 900 cars per week if the demand is DL.
B) the quantity demanded will be 700 cars per week if the demand is DL.
C) the quantity demanded will be 1150 cars per week if the demand is DL.
D) the quantity demanded will be 1150 cars per week if the demand is DM.
Correct Answer:
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