Use the Following to Answer Question(s)

Multiple Choice

Use the following to answer question(s) :
Exhibit: The Market for Carrots

-(Exhibit: The Market for Carrots) Assume that this is a perfectly competitive market and the original price is determined by D₁ and S. If the demand shifts to D₂, any firm could enter this market and:

A) sell all it wants to sell at 40 cents a pound.
B) sell all it wants to sell at 30 cents a pound.
C) be a price setter.
D) would probably set its price just above 30 cents a pound.