What will be the principal and most immediate effect on the supply or demand of raw cotton grown in the United States if a low-cost process for making cotton cloth wrinkle-free is developed?

To maximize its revenue

A) a firm facing inelastic demand should always raise its price. B) a firm facing elastic demand should always raise its price. C) a firm should always charge the highest price possible regardless of the elasticity of demand. D) None of the above answers is correct.

The demand curve for an individual seller's product in perfect competition is

A) vertical. B) horizontal. C) downward sloping. D) the same as market demand.