Gandy's Fruit and Vegetable Corner competes in a perfectly competitive market. They feel the going price of most of their fruit is just too low and decide to raise the prices.

1. Describe this market in economic terms and describe what will happen to the quantity demanded for Gandy's fruit.

2.Now assume Gandy moved to another part of the country and was able to earn an economic profit. Describe what would happen in that overall market as a result.

3. How, if at all, has Gandy's situation changed as a result of the move?