What is the effect of a permanent increase in demand in a perfectly competitive market,with no external economies or diseconomies?

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In a perfectly competitive market, a permanent increase in demand will lead to an increase in market price in the short run. However, in the long run, new firms will enter the market, attracted by the higher profits, and supply will increase. This will lead to a decrease in market price until it reaches its long-run equilibrium level, which is the same as the price before the increase in demand.

What Is the Effect of a Permanent Increase in Demand