In a perfectly competitive market that is in long-run equilibrium, a rightward shift in the market demand curve results in

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In a perfectly competitive market in long-run equilibrium, a rightward shift in the market demand curve will initially increase prices and profits, attracting new firms to enter the market until profits are driven back to normal levels. None of the events listed (price falling, profits falling, firms leaving) occur as a direct result of a rightward demand shift.

In a Perfectly Competitive Market That Is in Long-Run Equilibrium