Assume there is a decrease in the market demand for a good sold by price taking firms that are initially producing the profit maximizing level of output For the individual firm, this would result in a decrease in both price and the profit maximizing quantity of output a decrease in price and increase in the profit maximizing quantity of output an increase in both price and the profit maximizing quantity of output an increase in price and decrease in the profit maximizing quantity of output

Question: Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-maximizing level of output.

Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-maximizing level of output. For the individual firm, this would result in:

a decrease in both price and the profit-maximizing quantity of output.
a decrease in price and increase in the profit-maximizing quantity of output.
an increase in both price and the profit-maximizing quantity of output.
an increase in price and decrease in the profit-maximizing quantity of output

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