Refer to the information provided in Figure 9.7 below to answer the question(s) that follow. Figure 9.7
-Refer to Figure 9.7. Industry demand is initially D₁and industry supply is initially S₁ in this increasing cost industry. If ________, then in the long run the industry will move to point E.

Question

Refer to the information provided in Figure 9.7 below to answer the question(s) that follow.

Figure 9.7
-Refer to Figure 9.7. Industry demand is initially D₁and industry supply is initially S₁ in this increasing cost industry. If ________, then in the long run the industry will move to point E.

Quizplus · Accepted Answer

In an increasing cost industry, if demand increases (option C), the industry adjusts by moving to a new equilibrium point in the long run, which could be represented by point E in the given context. This adjustment happens as the industry responds to higher demand with increased production, which may lead to higher costs and prices, settling at a new equilibrium.

Refer to the Information Provided in Figure 9