When firms exit a market,all of the following occurs except:

Name: When firms exit a market,all of the following occurs except:
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Question

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When firms exit a market, the market supply shifts to the left, which can lead to an increase in equilibrium price level due to the reduction in supply. This can also lead to an increase in profits for firms that remain in the market. However, the market demand curve does not shift to the right since there is no change in consumer demand.

When Firms Exit a Market,all of the Following Occurs Except