Figure 7.13 -Refer to Figure 7.13.Assume That the Medical Screening Industry Is

Multiple Choice

Figure 7.13
-Refer to Figure 7.13.Assume that the medical screening industry is perfectly competitive and that some firms are incurring short-run losses.Suppose the medical screening industry runs an effective advertising campaign which convinces a large number of people that yearly CT scans are critical for good health.Which of the diagrams in the figure best describes what happens in the industry?

A) Panel A
B) Panel B
C) Panel C
D) Panel D