Product A B C D E F Steel 0 1 2 3 4 5 Wheat 100 90 75 55 30 0 Refer to the above table. A change from possibility B to C means that:

When aggregate demand meets aggregate supply in the horizontal portion of the aggregate supply curve,

A) a decrease in demand will cause prices to rise but no change in output. B) a decrease in demand will cause output to rise but no change in prices. C) a decrease in demand will cause prices to fall but no change in output. D) a decrease in demand will cause output to fall but no change in prices.

Having product differentiation means that a firm

a. cannot raise its price without suffering substantial loss of sales b. shifts the demand for the product to the left c. produces a good that is only a close substitute, at best, for the goods produced by other firms in the industry d. produces a good that is a perfect substitute for the goods produced by other firms in the industry e. has no incentive to advertise