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11) An constant-cost, perfectly competitive industry experiences a permanent increase in demand. In adjusting to this change, what will happen to the...

11)

An constant-cost, perfectly competitive industry experiences a permanent increase in demand. In adjusting to this change, what will happen to the price of the product?



It will increase in the short-run and then decrease in the long-run, but end up above its original level in the long-run.

It will increase in the short-run and then increase further in the long-run.

It will increase in the short-run and then decrease back to its original level in the long-run.

It will increase in the short-run and then decrease below its original level in the long-run.

It will decrease in the short-run but return to its original level in the long-run.

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It will increase in the short-run and... View the full answer

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