Question: refer to figure 147 assume that the market starts in...
Refer to Figure 14-7. Assume that the market starts in equilibrium at point A in panel (b). An increase in demand from Demand0 to Demand1 will result in
a) an eventual increase in the number of firms in the market and a new long-run equilibrium at point D.
b) rising prices and falling profits for existing firms in the market.
c) prices and falling profits for existing firms in the market.
d) a new market equilibrium at point B in the short run, before new firms enter the market.