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Your Company Manufactures Umbrellas, Among Other Accessories

Question 96

Multiple Choice

Your company manufactures umbrellas, among other accessories. Six months ago, you projected sales of 5,000 units of your $16 umbrellas over the course of a year, so you produced 5,000 umbrellas. But so far you've sold less than half. What does this mean, and what is the best way to address the situation?


A) Supply of this product at this price is too great and competition too intense, so you should discontinue making umbrellas.
B) Demand of this product at this price is less than anticipated, so you should produce fewer umbrellas in the future.
C) Demand of this product at a higher price must be greater, so you should start marketing your umbrellas as a premium product sold at a higher price point.
D) Demand of this product at this price is less than anticipated, so you should drop the price.

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