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r- [2 points] The market for widgets is perfectly competitive, the demand curve for Widgets is perfectly elastic, and the supply curve is positively sloped.

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r- [2 points] The market for widgets is perfectly competitive, the demand curve for Widgets is perfectly elastic, and the supply curve is positively sloped. There is a reduction in the marginal cost of producing Wi gets. s a result: W A consumer surplus will increase B consumer surplus will be unchanged C consumer surplus will decrease D D consumer surplus will increase only if the supply of Widgets is inelastic E consumer surplus will increase only if the supply of Widgets is elastic

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