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.
E
You might also like to view...
Of the following, the largest source of tax revenue collected by state and local governments comes from
A) individual income taxes. B) lottery revenues. C) corporate income taxes. D) death taxes. E) sales taxes.
The figure above shows Sam's budget line. Which of the following would result in Sam's budget line shifting leftward and not changing its slope?
A) a decline in his preferences for both gasoline and coffee B) an equal percentage reduction in the prices of both a gallon of gasoline and a pound of coffee C) a decrease in Sam's income D) a fall in the ratio of the price of a gallon of gasoline to the price of a pound of coffee