As a result of firms leaving the perfectly competitive frozen yogurt market in the early 2000s,the market
A) supply curve shifted leftward.
B) supply curve did not change.
C) demand curve shifted rightward.
D) supply curve shifted rightward.
E) demand curve shifted leftward.

Question

Quizplus · Accepted Answer

When firms exit a market, the supply of the product in that market reduces, causing the supply curve to shift leftward. Therefore, due to firms leaving the frozen yogurt market in the early 2000s, the supply curve shifted leftward.

As a Result of Firms Leaving the Perfectly Competitive Frozen