When demand increases in a perfectly competitive market,in the short run _______________,and in the long run _______________.

Question

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In the short run, firms are not able to adjust their production levels as quickly as demand changes, so the quantity supplied increases. However, in the long run, new firms can enter the market and existing firms can increase production, causing the overall supply to increase. Therefore, in the long run, both the quantity supplied and supply increase.

When Demand Increases in a Perfectly Competitive Market,in the Short