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

Name: Assume that a constant-cost industry experiences an increase in demand. In the long run, this will
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In a constant-cost industry, an increase in demand will initially raise prices and output. However, in the long run, firms will enter the market, increasing supply until the price returns to its original level, restoring the original equilibrium.

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