To face scarcity means individuals

If price elasticity of demand is 2.0, this implies that consumers would

a. buy twice as much of the good if price falls by 10 percent b. require a 2 percent cut in price to raise quantity demanded of the good by 1 percent c. buy 2 percent more of the good in response to a 1 percent cut in price d. require at least a $2 increase in price before showing any response to the price increase e. buy twice as much of the good if the price drops 1 percent

Refer to the data. Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) shown to columns (2) and (3). Economic profit will:

A.  fall by $10.
B.  fall to $6.
C.  increase by $10.
D.  decline to zero.