Assume that a decreasing-cost industry experiences an increase in demand. In the short run, this will

Name: Assume that a decreasing-cost industry experiences an increase in demand. In the short run, this will
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In the short run, an increase in demand in a decreasing-cost industry will lead to a price increase because the supply cannot immediately adjust to the higher demand, causing prices to rise temporarily until the industry can expand its production capacity.

Assume That a Decreasing-Cost Industry Experiences an Increase in Demand