In a decreasing-cost industry,the market price will tend to fall when there is an increase in demand.

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In a decreasing-cost industry, increased demand will result in larger economies of scale and lower production costs. As firms are able to produce and sell more units at a lower cost, they can lower their prices and maintain their profit margins. Therefore, the market price will tend to fall when there is an increase in demand in a decreasing-cost industry.

In a Decreasing-Cost Industry,the Market Price Will Tend to Fall