Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 
Figure 15.5 Refer to Figure 15.5. Assume The Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. If the firm produces the profit-maximizing level of output and sells it at the profit-maximizing price, the firm ________ of $400.
A. earns a profit
B. has total revenue
C. suffers a loss
D. has total cost
Answer: C
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If inflation is the most significant issue in the economy, an appropriate fiscal policy response would be to decrease taxation
a. True b. False Indicate whether the statement is true or false
When quantity demanded is greater than quantity supplied, market price is ________ the equilibrium price.
Fill in the blank(s) with the appropriate word(s).
What most likely causes the supply curve to shift from S1 to S2?
a. an increase in demand for a product
b. an increase in market price
c. an increase in firms entering the market
d. an increase in quantity sold
What causes AD1 to shift to AD2 in graph 2?
a. a stable PL1 in graph 2
b. a shift from MS2 to MS1 in graph 1
c. a shift from RGDP1 to RGDP2 in graph 2
d. a shift from i1 to i2 in graph 1