Refer to the graph. Economic output in year 0 is $20 billion. What is potential output in year 2? 

The downward slope of a demand curve

A) represents the law of demand. B) shows that as the price of a good rises, consumers increase the quantity they demand. C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. D) indicates how demand changes when incomes rise and the good is a normal good. E) indicates how demand changes when the price changes and the good is a normal good.

In each of the following cases, identify whether a competitive firm's producer surplus will increase, decrease, or remain unchanged

i. The demand for the product increases ii. The firm's marginal cost of production increases iii. The market price of the product falls