Refer to the Information Provided in Figure 9

Multiple Choice

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 ________, then in the long run the industry will move to point E.

A) supply decreases to S₂
B) supply remains at S₁
C) demand increases to D₂
D) demand decreases to D₂