Demand for bikes has suddenly increased, and the market price has risen from $50 to $60.

In three to five sentences, explain how this change will affect profits.

when a factory runs low on supplies they charge extra.So they can get there money back up to build more items.Once that they have more than enough they will reduce the price.Because they will go into over flow and may go out of business

Sample response: If the market price of bikes rises from $50 to $60, then the company will want to produce a larger quantity of bikes. This is because the overall marginal revenue is now higher and will be maximized differently. Before profit was maximized at six bikes, now the profit will be maximized by producing more bikes, perhaps seven.

Explanation:

answera major piece of legislation affecting the financial industry and containing significant privacy provisions for individuals;