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

Question

Quizplus · Accepted Answer

A decrease in demand leads to a fall in market output followed by a reduction in quantity supplied by each firm to the point where marginal cost equals its decreased marginal revenue. In the short run, this leads to a drop in market price. In the long run, firms that are unable to cover their costs are forced to exit the market, leading to a contraction of supply and a restoration of equilibrium at a higher price. Therefore, the last effect in this sequence is E.

If You Were to Put the Following Effects of a Decrease