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Figure: Industry Firms (Figure: Industry Firms) Refer to the Figures

Question 74

Multiple Choice

Figure: Industry Firms Figure: Industry Firms (Figure: Industry Firms) Refer to the figures. The market is characterized bydemand curve D<sub>2</sub> and supply curve S<sub>1</sub>. The firms in the industry are earning________, which will cause the: A) profit; supply curve to shift to S<sub>2</sub>. B) losses; demand curve to shift to D<sub>1</sub>. C) profit; supply curve to shift to S<sub>2</sub> and the demand curve to shift to D<sub>1</sub>. D) losses; supply curve to shift to S<sub>2</sub> and the demand curve to shift to D<sub>1</sub>. (Figure: Industry Firms) Refer to the figures. The market is characterized bydemand 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.

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