All Else Being Constant, When Firms Leave a Competitive Market

question 62

Multiple Choice

All else being constant, when firms leave a competitive market, then

• A)market supply decreases and market price rises.
• B)both market demand and market supply decrease.
• C)market supply decreases and market price falls.
• D)market demand decreases and market price falls.
• E)market demand increases and market price rises.

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Definitions:

Natural Concepts

Mental representations of objects and events drawn from our experiences in the world rather than defined by a set of specific rules.

Formal Concepts

Mentally constructed categories defined by set rules or criteria, used in logical reasoning and cognitive processes.

Fuzzy

Lacking clarity or precision; indistinct or vague, often describing textures that are soft and fluffy to the touch.

Concepts

Mental representations or ideas that help organize and categorize the world.