Carefully explain how changes in price would affect total revenue. That is, would total revenue increase, decrease or stay the same, and why? - Price rises and demand is inelastic. - Price falls and demand is elastic. - Price rises and demand is unitary elastic. b. Graphically show and explain how firms in pure competition market structure end up with zero economic profit in L-R. c. Graphically explain why MC cuts both ATC and AVC curves at their minimum point in short-run