$1200 .. $1000 $1000 D3 D2 D3 D1 D2 $600 O 300 500 650 500 Computers Per Week Computers Per Week A Refer to the graphs. Suppose a firm Is currently producing 500 computers per week and charging a price of $1,000. How will the firm respond to a negative demand shock If prices are Inflexible? Multiple Choice The firm will keep the price at $1,000. The firm will reduce the price to $600. The firm will Increase the price to $1,200. The firm will keep production at 500 computers.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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$1200
$1000
-----
$1000
D3
D2
$600
D3
D1 D2
O 300 500 650
500
Computers Per Week
Computers Per Week
A
Refer to the graphs. Suppose a firm Is currently producing 500 computers per week and charging a price of $1,000. How will the firm respond to a negative demand shock if prices are Inflexible?
Multiple Cholce
The firm will keep the price at $1,000.
The firm will reduce the price to $600.
The firm will Increase the price to $1,200.
The firm will keep production at 500 computers.
Transcribed Image Text:$1200 $1000 ----- $1000 D3 D2 $600 D3 D1 D2 O 300 500 650 500 Computers Per Week Computers Per Week A Refer to the graphs. Suppose a firm Is currently producing 500 computers per week and charging a price of $1,000. How will the firm respond to a negative demand shock if prices are Inflexible? Multiple Cholce The firm will keep the price at $1,000. The firm will reduce the price to $600. The firm will Increase the price to $1,200. The firm will keep production at 500 computers.
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