Question

Suppose that you are a bicycle producer. In 2 or 3 sentences, explain why you are willing to supply the most bicycles at the highest price.

Answer 1

By the logic of economic theory, consumers are rational and tend to want to pay the lowest possible price to minimize their spending, and rational producers tend to sell the product at the highest possible price to maximize their revenues. As a bicycle producer, there will be a minimum price at which I will offer bicycles. This minimum price will depend on my production courses and the remuneration for my service. If the price is below this minimum, I will not produce anything. If the price equals the minimum price you make me produce, I will produce a reasonable amount of bicycles. If the price is higher than the minimum price that makes me produce, I will produce a lot of bicycles, so I will make a bigger profit.

Answer 2

I think the only reason that Im willing to supply the most bicycle at the higher price depends on the demand and the competition, if the competition has low and the demand is high, I would sell it in high price. I hope you are satisfied with my answer and feel free to ask for more if you have question and further clarifications