Which of the Following Events Does NOT Occur When Market

question 31

Multiple Choice

Which of the following events does NOT occur when market demand shifts leftward in an increasing-cost industry?

• A) Initially, the output produced by existing firms declines along the short-run market supply curve.
• B) The market price declines below the minimum LAC due to the short-run supply response.
• C) The market supply curve shifts leftward as some firms exit the market when the market price is below the minimum LAC.
• D) As firms exit, the market price rises and attracts other firms to enter the market.
• E) The LAC curve shifts downward as output falls.

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