I ISHIN AT LU (b) (a) Price Price P2 Po Quantity Quantity Refer to Figure 14-13. Assume that the market starts in equilibrium at point A in panel (b). What will result from an increase in demand from Demando to Demand1? A new market equilibrium at point D An eventual increase in the number of firms in the market and a new long-run equilibrium at point C Falling prices and falling profits for existing firms in the market Rising prices and falling profits for existing firms in the market Next Page Page 3 of 21