When Consumer Demand for a Good Produced in a Price-Taker

Multiple Choice

When consumer demand for a good produced in a price-taker market decreases,

A) firms in the industry will continue to produce at the same output levels as before.
B) total market output will generally rise, but each individual firm will reduce its output.
C) the market price of the good will rise, causing additional resources to flow into the industry in the long run.
D) some firms will shut down in the long run, making their resources available for the production of other goods.