Smelly FruitAt first glance there is little to like about the durian. The durian is a fruit popular in Thailand that is spiky outside and stinky on the inside. When confronted with the durian for the first time, the Wall Street Journal recently reported that westerners often describe its distinctive sulphurous smell with words like stinky socks and manure. However, the durian is so popular in Thailand that one variety of the durian fruit, called the Kan Yao, has been selling for as high as $200. Even at that price, supply of the Kan Yao cannot keep up with demand. There are approximately 30 varieties of the durian grown in Thailand, with the most plentiful selling in the $15 range. The yellow flesh of the durian, the part you eat, has very powerful smell, but possesses a sweet, nutty
taste that Thais cannot seem to get enough of at any price.Refer to Smelly Fruit. At $200 per Kan Yao demand for the fruit appears to be higher than supply. Suppose at a price of $225, the amount demanded exactly meets the amount farmers are willing and able to supply. In this case the $225 price would be considered the _____ price.
A. Price equilibrium
B. Sales maximization
C. Profit maximization
D. ROI maximization
E. Yield management
Answer: A
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