If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause

Question

Quizplus · Accepted Answer

A perfectly elastic long-run supply curve means that firms can enter and exit the market freely without affecting the price of the good. Therefore, an increase in demand will only result in an increase in the number of firms in the market to meet the increased demand, with no change in price.

If the Long-Run Market Supply Curve for a Good Is