The doll producer would likely produce less than 500 dolls. Here's why:
1. When the price of dolls decreases, it typically means that the demand for dolls might be lower because consumers are not willing to pay as much for them.
2. In response to this lower demand and lower price, the doll producer would adjust their production to match the expected demand. Producing more dolls than demanded could lead to an excess of inventory, which would not be cost-effective for the producer.
3. Therefore, it is reasonable to expect the doll producer to reduce the number of dolls produced in order to align with the lower price and demand, leading to the production of less than 500 dolls.
