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Moderate

Perfectly-Competitive Market: Long-Run Change Based on Graph

APMICR-3PVKNV

Based on the above graph, which reflects a constant-cost industry, what would be the expected long-run changes in the industry?

A

Industry demand would increase; price would increase; quantity would increase.

B

Industry demand would decrease; price would decrease; quantity would decrease.

C

Industry supply would increase; price would decrease; quantity would increase.

D

Industry supply would decrease; price would increase; quantity would decrease.

E

Industry supply and demand would both increase: price would be indeterminate; quantity would increase.