Answer the following questions true (T) or false (F)
1. The producer's supply response under a cobweb adjustment response is based on the previous period price.
2. When firms cannot alter the price they face in the market, they are said to be price takers.
3. An outward shift in the demand curve in a perfectly competitive market will result in an increase in supply and make the demand curve more inelastic.
1. TRUE
2. TRUE
3. FALSE
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