If demand increases in a perfectly competitive market, which of the following will likely occur?

Name: If demand increases in a perfectly competitive market, which of the following will likely occur?
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Question

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In a perfectly competitive market, an increase in demand leads to higher prices and profits in the short term, attracting new firms to the market. This influx of firms increases supply, shifting the supply curve to the right and eventually lowering prices, aligning with all the points mentioned.

If Demand Increases in a Perfectly Competitive Market, Which of the Following