Click and drag on elements in order

After an increase in demand for an industry because of a change in consumer tastes:

Instructions

Economic profits will disappear when price and minimum ATC are equal

Firms that remain in the industry will earn a normal profit only.

Economic profits will attract new firms into the industry.

A new long run equilibrium is reached and firms no longer have incentive to enter or exit the industry.

The market supply of the product will increase.

The product price and firms' marginal revenue will drop