At a price of $2,000,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300,but only 191 bikes are being made.At a price of $2,300,the demand for the bikes is 250,and exactly 250 bikes are being made.If Cloyd'ssells each one of the bikes at a price lower than $2,300,_____.
A)a shortage of bikes will be created
B)the number of bikes being made will increase drastically
C)an inelastic demand for the bikes will be created
D)the demand and supply for the bike will attain equilibrium

Question

At a price of $2,000,the demand for Ranger 60 mountain bikes from Cloyd's Inc.is 300,but only 191 bikes are being made.At a price of $2,300,the demand for the bikes is 250,and exactly 250 bikes are being made.If Cloyd'ssells each one of the bikes at a price lower than $2,300,_____.​
A)a shortage of bikes will be created
B)​the number of bikes being made will increase drastically
C)​an inelastic demand for the bikes will be created
D)the demand and supply for the bike will attain equilibrium

Quizplus · Accepted Answer

At a price lower than $2,300, the demand for the bikes is higher than the supply, therefore a shortage of bikes will be created.

At a Price of $2,000,the Demand for Ranger 60 Mountain