Suppose the Dry Cleaning Industry Is Initially in Long-Run Equilibrium

Suppose the dry cleaning industry is initially in long-run equilibrium but then experiences a sharp increase in the price of its inputs. Assuming that the industry is perfectly competitive, the increase in costs should:

A) decrease the number of firms in the industry in the long run and raise the market price.
B) increase the number of firms in the industry in the industry and raise the market price.
C) decrease the number of firms in the industry in the long run and reduce the market price.
D) increase the number of firms in the industry in the industry and reduce the market price.

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