Figure 7-H -Refer to Figure 7-H.This Pair of Graphs Demonstrates the Chain

Figure 7-H
-Refer to Figure 7-H.This pair of graphs demonstrates the chain of events for a lawn care firm, beginning with an increase in the market demand for lawn care services.Which of the following statements is incorrect?

A) This particular firm increases its production of lawn care services in response to an increase in the price of lawn care services.
B) The overall quantity of lawn care services increases in the industry.
C) The equilibrium price of lawn care services is initially P₀, then increases to P₁ because of the increase in demand, and eventually decreases to P₀ once again when the market supply of output increases as a result of new firms entering the industry.
D) The diagrams depict an increasing cost industry.