Refer to the table below. When the firm produces 3 units of output, it makes an economic:
Use the table below to answer the question for a purely competitive firm.
A. Profit of $3
B. Loss of $3
C. Profit of $9
D. Loss of $9
A. Profit of $3
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Suppose the demand curve for a product is represented by a typical downward-sloping curve. Now suppose the demand for this product increases. Which of the following statements accurately predicts the resulting increase in price?
A) The more elastic the supply curve, the greater the price increase. B) The increase in price is not affected by the elasticity of the supply curve. C) The more elastic the supply curve, the smaller the price increase. D) There will be no increase in price if the supply curve is perfectly inelastic.