When a firm is earning economic profit, this indicates the firmis

a. increasing the value of the resources that it is using.

b. reducing the value of the resources that it is using.

c. supplying the market with a low quality product.

d. creating less value for consumers than another firm that iscurrently earning losses.

Which of the following events would decrease producersurplus?

a. Sellers' costs stay the same and the price of the goodincreases.

b. Sellers' costs increase and the price of the good stays thesame.

c. Sellers' costs decrease and the price of the goodincreases.

d. All of the above are correct.

If the supply of a good is relatively inelastic, this means thatthe quantity supplied of the good is

a. not very sensitive to the price of the good.

b. highly sensitive to the price of the good.

c. unrelated to the price of the good.

d. none of the above.