​A sudden rise in the market demand in a competitive industry leads to

A) ​A short run market equilibrium price lower than the original equilibrium
B) A market equilibrium lower than the short run price
C) Some firms exiting the market
D) ​All of the above

Market Equilibrium

The state in which market supply and demand balance each other, and as a result, prices become stable.

Competitive Industry

Competitive industries are characterized by three factors: (1) firms produce a product or service with very close substitutes meaning demand is very elastic, (2) firms have many rivals and no cost advantage over those rivals, and (3) the industry has no barriers to entry or exit.

Market Demand

The total volume of goods or services that consumers in a specific market are willing and able to purchase at different price levels.