According to the law of supply, a rise in the price of a good or service almost always leads to an increase in the quantity supplied of that good or service, while a fall in price will decrease the quantity supplied

The real-income effect shows that

A) a decrease in the price of a good increases the purchasing power of the consumer's income. B) if the consumer's income rises, he or she buys more of inferior goods and less of normal goods. C) if a good is inferior, a decrease in the purchasing power of income results in less of the good being consumed. D) when the price of a good rises, consumers are able to buy more of other goods because of the increase in the purchasing power of income.

A profit-maximizing, monopolistically competitive restaurant serves 60 burgers a day at a total cost of $180 and earns a total profit of $180. In the long run, everything else equal, the

A. restaurant will charge more than $6 per burger. B. restaurant’s average total cost will rise and its total revenue will fall. C. restaurant will sell more burgers at a lower average profit per burger. D. All of the responses are correct.