In a monopolistically competitive market, how does a firm adjust its price in response to a change in consumer demand when the market is in long-run equilibrium?

In a monopolistically competitive market, firms sell similar but not identical products, which gives them some control over their prices. When consumer demand increases, firms notice they can sell more at a higher price, leading them to raise their prices to maximize profits. In the long run, this higher price attracts new firms to the market because they see the opportunity to profit. As new firms enter, the increased competition will eventually lead to a decrease in prices and profits for all firms, bringing the market back to a new long-run equilibrium where firms earn normal profits. For example, if a popular coffee shop raises its prices due to higher demand, new coffee shops may open nearby, offering lower prices until the market stabilizes again.