A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand increases. As a result,

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When market demand increases, the demand curve for each firm shifts upward. This leads to an increase in the price of the product, leading to an increase in the quantity supplied by firms in the industry. As a result, each firm experiences an increase in its output and profit, and the industry moves towards a new long-run equilibrium with higher prices and output. However, there is no reason to believe that the marginal revenue curve, marginal cost, or average total cost would be affected by the change in demand.

A Perfectly Competitive Market Is Initially in Long-Run Competitive Equilibrium