what-are-the-long-run-effects-of-increased-market-demand-on-the-number-of-firms-

Question

What are the long run effects of increased market demand on the number of firms and overall supply?

Accepted Answer

More firms enter, increasing overall supply.

Answer

Fewer firms enter, decreasing overall supply.

Answer

The number of firms remains constant, but supply decreases.

Answer

The number of firms decreases, but supply increases.