If You Were to Put the Following Effects of a Decrease

question 5

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 the last one?

• A)The demand curve facing each individual firm shifts downward.
• B)Each firm reduces quantity supplied to the point where marginal cost equals its decreased 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.