Figure 14-14 -Refer to Figure 14-14.Assume That the Market Starts in Equilibrium

Figure 14-14


-Refer to Figure 14-14.Assume that the market starts in equilibrium at point A in panel (b) .An increase in demand from D0 to D1 will result in

A) a new market equilibrium at point D.
B) an eventual increase in the number of firms in the market and a new long-run equilibrium at point C.
C) rising prices and falling profits for existing firms in the market.
D) falling prices and falling profits for existing firms in the market.