What will happen graphically if firms exit from a perfectly competitive industry?

Question

Quizplus · Accepted Answer

When firms exit from a perfectly competitive industry, the market supply curve will shift to the left. This is because the number of firms in the market decreases, leading to a decrease in the total quantity supplied at any given price level. As a result, there will be upward pressure on prices until the market reaches a new equilibrium with a lower quantity supplied and a higher price. The demand curve will remain unaffected by the exit of firms.

What Will Happen Graphically If Firms Exit from a Perfectly