Assume a Purely Competitive Increasing-Cost Industry Is Initially in Long-Run

Multiple Choice

Assume a purely competitive increasing-cost industry is initially in long-run equilibrium and that an increase in consumer demand occurs. After all economic adjustments have been completed, product price will be

A) lower, but total output will be larger than originally.
B) higher, and total output will be larger than originally.
C) lower, and total output will be smaller than originally.
D) higher, but total output will be smaller than originally.