Answer:
They will not increase because it can sell as many units as it wants at$5
Explanation:
a competitive market will take prices it will not change them.
If it do, when increasing price their sales will drop to zero as the demand is perfectly elastic
If the firm decides to lower the price it will not have imapct on the sales level.
It sale as many as possible at 4.99 and then the consumers will keep buying at 5
Thefirm will only decrease his profit by doing so.
