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 D1 and industry supply is initially S1 in this increasing cost industry. If demand increases to D2, then in the long run the industry will
A) stay at Point B.
B) move to Point C.
C) move to Point E.
D) move to Point F.

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 D1 and industry supply is initially S1 in this increasing cost industry. If demand increases to D2, then in the long run the industry will
A) stay at Point B. 
B) move to Point C. 
C) move to Point E. 
D) move to Point F.

Quizplus · Accepted Answer

In an increasing cost industry, as demand increases from D1 to D2, the industry will eventually move to a new long-run equilibrium at a higher price and quantity, which is represented by Point E.

Refer to the Information Provided in Figure 9