Assume the Tennis Ball Industry, a Perfectly Competitive Industry, Is

Multiple Choice

Assume the tennis ball industry, a perfectly competitive industry, is in long-run equilibrium with a market price of $5. If the demand for tennis balls increases and the industry experiences decreasing returns to scale, long-run equilibrium will be reestablished at a price

A) greater than $5.
B) less than $5.
C) equal to $5.
D) either greater than or less than $5, depending on the number of firms that enter the industry.