An industry currently producing output at a level where normal profits are being earned experiences an increase in the demand for its products Assume that supply does not increase Which of the following are true A Prices will increase and additional economic resources will enter into the industry B Investor required returns will increase and profits will continue to be normal C Both a and b D Neither a nor b

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Question: An industry currently producing output at a level where normal profits are being earned experiences an increase in the demand for its products. Assume that

An industry currently producing output at a level where normal profits are being earned experiences an increase in the demand for its products. Assume that supply does not increase. Which of the following are true?

A.Prices will increase and additional economic resources will enter into the industry.
B.Investor required returns will increase and profits will continue to be normal.
C.Both a and b
D.Neither a nor b.

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