Suppose that a competitive market is initially in
equilibrium. Then demand increases. If some resources
used in production are not available in sufficient quantities for
entering firms,
a. the long-run market supply curve will be upward
sloping.
b. the long-run market supply curve will be perfectly
elastic.
c. in the long run firms will suffer economic losses, leading
them to exit the industry.
d. the number of firms will decrease, and the market will
become a monopoly.