The exit of farms from a market should
A)Shift the agricultural market supply curve to the right.
B)Increase the equilibrium market price.
C)Decrease the equilibrium market price.
D)Increase the equilibrium market output.

Question

Quizplus · Accepted Answer

When farms exit a market, the supply of agricultural products decreases, leading to a leftward shift in the supply curve. This reduction in supply, with demand remaining constant, increases the equilibrium market price.

The Exit of Farms from a Market Should