Consider an industry that is in long-run equilibrium. An increase in demand leads to a decrease in the price of the good. We know that this is

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In a decreasing-cost industry, an increase in demand can lead to economies of scale, where the average cost of production decreases as the quantity of output increases. This can result in a decrease in the price of the good, even as demand increases, because producers are able to produce more at a lower cost per unit.

Consider an Industry That Is in Long-Run Equilibrium