If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause a. an increase in the price of the good and an increase in the number of firms in the market. b. an increase in the price of the good but no increase in the number of firms in the market. c. no impact on either the price of the good or the number of firms in the market. d. an increase in the number of firms in the market but no increase in the price of the good.

The link between total output and the average marginal cost of creating this output is measured by the market supply curve.
One justification for sketching supply curves with P on the vertical axis is the interpretation of the market supply curve as a marginal cost curve.

What happens when demand increases in a perfectly competitive market in the long run?

An increase in demand generates economic profit in the short run and encourages entry in the long run in a perfectly competitive market in long-run equilibrium; a decrease in demand generates economic losses (negative economic profits) in the short run and forces some businesses to leave the industry in the long run.
Growth in the number of firms in the market, as well as an increase in the price of the goods.
If the long-run market supply curve for an item is perfectly elastic, an increase in demand will raise the price of the goods and increase the number of businesses in the market in the long run.

Solution -

As it is given above if the long-run market supply curve for an item is perfectly elastic, an increase in demand will raise the price of the goods and increase the number of businesses in the market in the long run.

Therefore, an increase in the demand for that goodwill, in the long run, causes (A) an increase in the price of the goods and an increase in the number of firms in the market.

Know more about a firm here:

https://brainly.com/question/25491204

#SPJ4