PRICE a Graph (a) 99 QUANTITY MC ATC PRICE a a Graph (b) QUANTITY S₁ D₁ Refer to Figure 15-7. Assume that the market starts in equilibrium at point W in graph (b). An increase in demand from Do to D₁ will result in a new market equilibrium at point X an eventual increase in the number of firms in the market and a new long-run equilibrium at point Z. rising prices and falling profits for existing firms in the market. O falling prices and falling profits for existing firms in the market.
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