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Scenario: The market demand for soccer balls in a small town is 2,500 units, and there are two rival sports brands selling soccer balls in this town, Sporty and Go! The products of the two brands are identical.
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Scenario: The market demand for soccer balls in a small town is 2,500 units, and there are two rival sports brands selling soccer balls in this town, Sporty and Go! The products of the two brands are identical.

Refer to the scenario above. The demand for​ Sporty's soccer balls is​ 1,250 units if​:

A. the price charged by Sporty is equal to the price charged by​Go!
B. the price charged by Sporty is higher than the cost of production of each ball
C. the price charged by Sporty is higher than the price charged by​ Go!
D. the price charged by​ Go! is higher than the price charged by Sporty

User Scott Tomaszewski
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2 Answers

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The price charged by Sporty is equal to the price charged byGo!
User Humanbeing
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3.5k points
4 votes

Answer: The price charged by sporty is equal to the price charged by GO!

Explanation: In this scenario, there are two identical products in the market which is soccer balls. The demand for the product soccer balls is 2500. Sporty and Go are both soccer balls manufacturers and they have equal demand (The demand for​ Sporty's soccer balls is​ 1,250 units) because the half of 2500 is 1250 therefore, the best option will be the price charged by Sporty is equal to the price charged by​Go!

User Jkeating
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