A fall in the price of a good causes an increase in its:

Refer to the scenario above. What is likely to be the impact on Firm B's sales if Firm B decides to sponsor the event while Firm A decides not to sponsor the event?

A) A 10% increase in sales B) A 7% increase in sales C) A 2% increase in sales D) A 5% increase in sales

If competitive industry Z is making substantial economic profit, output will:

A. fall in industry Z and firms will likely leave the market. B. fall in all industries except industry Z. C. expand in industry Z as more resources will move to that industry. D. expand in industry Z, but no new firms will enter the market.