(Figure: Profit-Maximizing Quantity and Price III) What Happens to the Firm's

(Figure: Profit-maximizing Quantity and Price III) What happens to the firm's profit-maximizing price and quantity following the increase in demand from D₁ to D₂?

A) The firm will increase the price to P₃ and sell Q₁ units of output.
B) The firm will raise the price from P₂ to less than P₃ and increase output from Q₁ to less than Q₂.
C) The firm will sell Q₂ units of output at a price of P₂.
D) The firm will reduce output from Q₃ to Q₂ and raise the price from P₂ to P₃.