Tony, a lone craftsman, makes ruby jewelry and currently sells for $300 per piec
ID: 1180014 • Letter: T
Question
Tony, a lone craftsman, makes ruby jewelry and currently sells for $300 per piece. He does not know whether or not consumers would be willing to pay even more. The minimum acceptable price to Tony is $150. Based on this information, which of the following is true?
A)
Tony should stop selling ruby jewelry.
B)
Tony cannot possibly receive a higher price.
C)
Tony
Tony, a lone craftsman, makes ruby jewelry and currently sells for $300 per piece. He does not know whether or not consumers would be willing to pay even more. The minimum acceptable price to Tony is $150. Based on this information, which of the following is true?
A)
Tony should stop selling ruby jewelry.
B)
Tony cannot possibly receive a higher price.
C)
Tony
Explanation / Answer
C Tony's supply is relatively elastic as he has more room to lower his price or sell fewer pieces if his demand for his jewelry decreases.