Refer to the information provided in Figure 9.5 below to answer the question that follows. Figure 9.5
-Refer to Figure 9.5. Based on the figures, supply will ________ in the long run and profits should ________.
A) increase; decline
B) increase; increase
C) decrease; decline
D) decrease; increase

Question

Refer to the information provided in Figure 9.5 below to answer the question that follows.  Figure 9.5
-Refer to Figure 9.5. Based on the figures, supply will ________ in the long run and profits should ________.
A) increase; decline 
B) increase; increase 
C) decrease; decline 
D) decrease; increase

Quizplus · Accepted Answer

In the long run, an increase in supply is typical as firms enter the market due to the presence of profits, leading to increased competition which then causes profits to decline.

Refer to the Information Provided in Figure 9