Question

Demand for bikes has suddenly increased, and the

Answer 1

When the demand for bikes has considerably increased with a rise in price by $10, then the profit also increases by $10 on every bike sold.

What is meant by profit?

Profit is an incentive earned by a company by selling its products at a price higher than the original cost.

From the provided situation, it has been analyzed that there is a direct relationship between price and demand, which means an increase in demand leads to a rise in prices also. This will ultimately raise the profits of a company in respect of goods sold.

Therefore, the profits are also raised by $10 in a similar way as the rise in price by $10 due to an increase in demand for bikes.

Learn more about the economic profit in the related link:

brainly.com/question/15699405

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