If demand increases in a perfectly competitive market, the price will:

Name: If demand increases in a perfectly competitive market, the price will:
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In a perfectly competitive market, an increase in demand leads to a temporary increase in price. This is because, in the short term, the supply cannot immediately adjust. However, over time, the entry of new firms and the adjustment of existing firms to the higher demand will increase supply, bringing the price back down to the equilibrium level.

If Demand Increases in a Perfectly Competitive Market, the Price