23. Consider the perfectly competitive firm and industry depicted to the right. The industry was in long run equilibrium when demand for the good it produces increased causing the demand curve to shift from
D1 to D2. In the short run:
- There is no change in the output for the firm or the industry.
- Price and quantity produced increase for the firm and industry.
- Output increases for the firm but falls for the industry.
- Price decreases for the firm, but increase for the industry.
- Price stays the same for the firm, but quantity decreases.
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