If a change in market demand results in no change in price in the long run, then it is true that the long-run industry supply curve does not exist.

Question

Quizplus · Accepted Answer

A change in market demand resulting in no change in price in the long run can indicate a perfectly elastic long-run industry supply curve, not the absence of one. This suggests that the industry can adjust to changes in demand without changing the price, often due to constant returns to scale.

If a Change in Market Demand Results in No Change