If the government uses the budget as an economic stabilizer, the budget is most likely to be in deficit during a(n)

Refer to the scenario above. What is likely to be the impact on Firm B's sales if none of the firms decide to sponsor the event?

A) A 7% increase in sales B) A 0% increase in sales C) A 2% increase in sales D) A 10% increase in sales

In the above figure, what happens to the firm's optimal level of output if the price it receives for its product decreases from P4 to P3?

A) Output stays the same. B) Output decreases. C) Output increases. D) There is not enough information provided to know what happens to output.