A recent diet trend has made snack cakes far less popular than they once were. As such, demand for snack cakes is expected to fall. As demand falls, _____.(1 point)

Question

Responses

consumers face higher prices, and are encouraged to consume less
consumers face higher prices, and are encouraged to consume less

producers make lower profits, and some will exit the market
producers make lower profits, and some will exit the market

producers make higher profits, and more will enter the market
producers make higher profits, and more will enter the market

consumers face lower prices, and are encouraged to consume more

Answer 1

As demand falls, producers make lower profits, and some will exit the market.