If you were to put the following effects of a decrease in demand into thesequence in which they occur, which would be last?

Question

Quizplus · Accepted Answer

A decrease in demand causes a short-run market price drop which leads to each firm reducing its quantity supplied to the point where the marginal cost meets its lower marginal revenue. This reduction in supply leads to a decrease in market output. As the market output falls, some firms may experience a short-run loss, eventually leading to some firms exiting the market in the long run. Therefore, E must be the last effect to occur.

If You Were to Put the Following Effects of a Decrease