Exhibit 12-1 Refer to Exhibit 12-1

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

A) both the market price and the price of the price-taking firm have increased to $5.
B) both the market price and the price of the price-taking firm have fallen to $4.
C) the quantity of goods transacted in the market has fallen from Q₁ to Q₀.
D) at the new equilibrium price, the firm will be unable to sell any of its output.