Industry supply turns out to be simply the sum of the firm supplies, just as we learned in the section on Entry (Demand & Supply). Industry demand is simply the total market demand for the product. It also turns out to be the sum of the individual demands for the product.

   At the industry level, equilibrium price changes in exactly the ways we learned in our simple supply and demand models. If supply increases, market price falls and quantity increases. What remains here is to learn what happens within the individual firms (within the industry), and what happens to the number of firms within the industry.

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