Figure 9-10 In Figure 9-10, the Movement from Points a to B

Multiple Choice

Figure 9-10
In Figure 9-10, the movement from points A to B to C can best be explained by which of the following factors?

A) a decrease in demand, followed by the entry of new firms and an expansion in supply in a constant cost industry.
B) an increase in demand, followed by the entry of new firms and an expansion in supply in an increasing cost industry.
C) a decrease in demand, followed by the exit of firms and a decline in supply in an increasing cost industry.
D) an increase in demand, followed by the exit of firms and a decline in supply in a constant cost industry.