Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand increases from D0 to D1, in the short run:
Group of answer choices
Market price remains at P0 because perfectly competitive firms can't earn positive economic profit.
The firm's output remains at q0 because perfectly competitive firms can't earn positive economic profit.
Market price rises from P0 to P1 and the firm's output rises from q0 to q1.
Market price rises from P0 to P1 and the firm's output rises from Q0 to Q1.