Multiple Choice
-The above diagram (a) represents the demand for and supply of a brand of automobile (Turbo-car) for a car manufacturing company named Fancy Auto.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 prices are flexible,Fancy Auto:
A) can continue to sell its optimal output regardless of the demand level.
B) can continue producing its optimal output level only if demand is at DL level.
C) can continue producing its optimal output level only if demand is at DM level.
D) can continue producing its optimal output level only if demand is at DH level.
Correct Answer:

Verified
Correct Answer:
Verified
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