Figure: Industry Firms Reference: Ref 11-9 (Figure: Industry Firms)

Figure: Industry Firms Reference: Ref 11-9 (Figure: Industry Firms) Refer to the figures. The market is characterized by demand curve D2 and supply curve S1. The firms in the industry are earning ________, which will cause the:

A) profit; supply curve to shift to S2.
B) losses; demand curve to shift to D1.
C) profit; supply curve to shift to S2 and the demand curve to shift to D1.
D) losses; supply curve to shift to S2 and the demand curve to shift to D1.