G.146. Use the figures below to answer the followingquestions.Figure 14-9PriceP₂P₁Pa(a)PriceMCATCQ, Q₂ QuantityP₂P₁(b)SupplySupplyDemand,Demandoa QuantityRefer to Figure 14-9. Assume that the market startsin equilibrium at point A in panel (b). An increasein demand from Demand, to Demand, will resultinan eventual increase in the number of firms inthe market and a new long-run equilibrium atpoint C.a new market equilibrium at point D.falling prices and falling profits for existingfirms in the market.rising prices and falling profits for existingfirms in the market.

Perfect competition: A firm in the competitive market is a price taker because it has large number…

Use the figures below to answer the following questions. Figure 14-9 Price Po (a) Price MC ATC Q, Q₂ Quantity Supply Supply Demand, Demando aaa Quantity Refer to Figure 14-9. Assume that the market starts in equilibrium at point A in panel (b). An increase in demand from Demando to Demand, will result in an eventual increase in the number of firms in the market and a new long-run equilibrium at point C. a new market equilibrium at point D. falling prices and falling profits for existing firms in the market. rising prices and falling profits for existing firms in the market.