Suppose That Demand Increases

Multiple Choice

Suppose that demand increases. If the total cost curves for the firms do not change with the number of firms:

A) the minimum average total cost, equilibrium price, output per firm, total market quantity, and number of firms will all increase.
B) the minimum average total cost, output per firm, total market quantity, and number of firms will increase, but equilibrium price will decrease.
C) the minimum average total cost, equilibrium price, and output per firm will not change, but total market quantity and the number of firms will increase.
D) the output per firm, total market quantity, and number of firms will increase, but equilibrium price and minimum average total cost will decrease.