If Firms Are Price Setters,a Small Decline in the Demand

Multiple Choice

If firms are price setters,a small decline in the demand for their outputs will cause them to

A) reduce price and reduce the level of output produced.
B) reduce output in the short run, but reduce price in the long run.
C) reduce price in the short run, but reduce output only in the long run.
D) increase price in the short run to offset the effect on profits of a decline in output.