When price is above the equilibrium level, suppliers offer more than demanders wish to buy

Suppose the market for hot pretzels in New York City is perfectly competitive. What is true of demand in this market?

a. The demand curve facing each seller is perfectly elastic. b. The demand curve facing each seller is perfectly inelastic. c. The market demand curve is perfectly elastic. d. The market demand curve is perfectly inelastic. e. The market demand curve is elastic.

If minimum efficient scale is small relative to the maximum potential market,

a. relatively large firms will have a cost advantage over relatively small firms b. the market price will be low c. relatively small firms will have a cost advantage over relatively large firms d. the market price will be high e. only one firm will survive in the long run.