Exhibit 12-1 Refer to Exhibit 12-1.In Graph A,the market demand has increased from d₀ to d₁,and as a result:

Question

Quizplus · Accepted Answer

When the market demand increases from d₀ to d₁, the equilibrium price increases from $5 to $6. This increase in market price also affects the price of the price-taking firm, which also increases to $6. The quantity of goods transacted in the market falls from Q₁ to Q₀. Therefore, the best choice is A.