Question

At a price of $2,000 per unit, the demand for Rancho 60 mountain bikes from Peyton Bike's Inc. is 300 units, which is the number of bikes the company manufactures every year. This is Peyton Bike's maximum output. If the marketing managers at Peyton Bike's Inc. decide to sell each bike at a price lower than $2,000 per unit, _____.

Answer 1

The statement "bikes shortage should be developed" is correct.

The following information should be considered:

• In the case when the firm wants to sell the product at a lower price so there should be a product shortage.
• The demand and supply should not achieve at equilibrium.
• There is no inelastic demand that should be developed.
• The no of bikes generated should not be increased.

Therefore we can conclude that The statement "bikes shortage should be developed" is correct.

Learn more about the product shortage here: brainly.com/question/12596577