A firm engages in the development and extraction of oil and gas, the supply of which is price inelastic. The most likely equilibrium response in the long run to an increase in the demand for petroleum...

A firm engages in the development and extraction of oil and gas, the supply of which is price inelastic. The most likely equilibrium response in the long run to an increase in the demand for petroleum is that oil prices:

A. increase, and extraction costs per barrel fall.

B. increase, and extraction costs per barrel rise.

C. remain constant, and extraction costs per barrel remain constant.