| What happens to the profit-maximizing price and quantity following the change in the demand curve from D1 to D2? |
| | The price falls from $4.50 to $3, and the output increases from 300 to 500 units. | | The price falls from $5 to approximately $4, and the output increases from 300 to approximately 333 units. | | The price rises from approximately $4 to $5, and the output remains unchanged at 300 units. | | The price rises from $5 to approximately $5.75, and the output decreases from 300 to approximately 250 units. | |
The price falls from $5 to approximately $4, and the output increases from 300 to approximately 333 units.