Suppose That Techno Co

Multiple Choice

Suppose that Techno Co. produces laptop computers. At a price of $1,000 per laptop, Techno determines that its optimal output is 3,000 laptops per week. If prices are sticky and fears of a
Recession reduce demand for laptop computers, we would expect Techno to

A) reduce output in the long run.
B) reduce output in the short run.
C) raise prices in the short run to compensate for lost revenue.
D) lower prices in the short run to offset the reduced demand.