Scenario: There Are Several Pen Manufacturers in Corinthia

Multiple Choice

Scenario: There are several pen manufacturers in Corinthia. However, the pens sold by each manufacturer have a unique design.
-Refer to the scenario above.How will the demand for pens faced by the existing pen manufacturers in Corinthia be affected if several firms exit the industry in the long run?

A) The demand curve faced by existing firms will become perfectly inelastic.
B) The demand curve faced by existing firms will become perfectly elastic.
C) The demand faced by existing firms will increase.
D) The demand faced by existing firms will decrease.