Question

A vendor makes a new smartphone and presells four thousand units for $300 each. The factory has the capacity to produce one thousand smartphones per month. Anticipated sales are five hundred units per month. Which of these would occur during the first few months of sales?

Answer 1

In the first few months of sales, Limited supply would increase the price, based upon price and demand relationship. If supply increases, prices will decrease. 

Thus, the vendor who makes a new smartphone and presells four thousand units for $300 each will have profit as selling price will be higher.

Answer 2

Answer:

B. Limited supply would increase the price.

Explanation:

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