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An increase in demand is shown as an upward shift in demand curve d 3 d 4 which pushes the short run price to op 2 at which industry supply is oq 2. In short the long run and the short run in microeconomics are entirely dependent on the number of variable and or fixed inputs that affect the produc…

In order to understand short run versus long run market dynamics it s helpful to analyze how markets respond to a change in demand. The long run aggregate supply curve lras is determined by all factors of production size of the workforce size of capital stock levels of education and labour product…