​A sudden increase in the market demand in a competitive industry leads to

A) ​Losses in the short-run and average profits in the long-run
B) Above average profits in the short-run and average profits in the long-run
C) New firms being attracted to the industry
D) ​Both B&C

Market Demand

The total quantity of a product or service that consumers are willing and able to purchase at various prices within a given period.

Competitive Industry

A market in which multiple firms compete against each other to sell their goods or services to consumers.

Long-Run

A period in economics during which all factors of production and costs are variable, allowing full adjustment to change.