Price Price and cost (dollars Supply of (dollars per pound) apples per pound) LO Market 3 Market price price Demand for apples 8 8 8 O O Quantity Quantity (thousands of pounds) (thousands of pounds) The graphs in the above Figure represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry. 1. Refer to the Figure. Which of the following statements is true? The current market price is $3 but the price will fall in the long run as new firms enter the market. The current market price is $3 but the firm will be able to increase the price in the future. The current market price is $3 but the price will fall in the long run as a result of a decrease in demand. The current market price is $3 but the price will increase in the future as the market demand increases