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? Group of answer choices Market output falls. The demand curve facing each individual firm shifts downward. A short-run loss forces some firms out of business in the long run. In the short run, the market price drops. Each firm reduces quantity supplied to the point where marginal cost equals its decreased marginal revenue.

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? Group of answer choices Market output falls. The demand curve facing each individual firm shifts downward. A short-run loss forces some firms out of business in the long run. In the short run, the market price drops. Each firm reduces quantity supplied to the point where marginal cost equals its decreased marginal revenue.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 16CQ

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Question

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?

Group of answer choices

Market output falls.

The demand curve facing each individual firm shifts downward.

A short-run loss forces some firms out of business in the long run.

In the short run, the market price drops.

Each firm reduces quantity supplied to the point where marginal cost equals its decreased marginal revenue.

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