(Figure: Profit-Maximizing Quantity and Price IV) What Happens to the Profit-Maximizing

question 29

Multiple Choice

(Figure: Profit-maximizing Quantity and Price IV) What happens to the profit-maximizing price and quantity following the change in the demand curve from D₁ to D₂?

• A) The price rises from $5 to approximately $5.75, and the output decreases from 300 to approximately 250 units.
• B) The price falls from $4.50 to $3, and the output increases from 300 to 500 units.
• C) The price falls from $5 to approximately $4, and the output increases from 300 to approximately 333 units.
• D) The price rises from approximately $4 to $5, and the output remains unchanged at 300 units.

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