If You Were to Put the Following Effects of a Decrease

question 12

Multiple Choice

If you were to put the following effects of a decrease in demand into the sequence in which they occur, which would be last?

• A)The demand curve facing each individual firm drops.
• B)Each firm reduces quantity supplied to the point where marginal cost equals its now-lower marginal revenue.
• C)In the short run, the market price drops.
• D)Market output falls.
• E)A short-run loss forces some firms out of business in the long run.

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