If firms in a perfectly competitive market are incurring an economic loss in the short run, some firms will exit. How does this exit change the market?

Question

Accepted Answer

The market supply curve leftward, and the market price rises.

Answer

The market demand curve leftward, and the market price falls.

Answer

The market supply curve leftward, the market demand curve shifts rightward, and the market price rises.

Answer

The market demand curve rightward, and the market price rises.

Answer

The market supply curve rightward, and the market price falls.

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If firms in a perfectly competitive market are incurring an economic loss in the...

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