Refer to the information provided in Figure 9.7 below to answer the question(s) that follow.
Figure 9.7 Refer to Figure 9.7. Industry demand is initially D1 and industry supply is initially S1 in this increasing cost industry. If ________, then in the long run the industry will move to point E.
A. supply remains at S1
B. demand decreases to D2
C. supply decreases to S2
D. demand increases to D2
Answer: D
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