As the market demand decreases, how will the firm's amount of output change? Explain your answer by describing the shifts that occur in the two graphs below and the principles the firm uses to maximize its profit or minimize its loss.

Price Price (dollars S and ATC per box) cost MC $10 $10 D1 = MR1 D1 D2 0 3,100,000 Quantity 0 18,000 Quantity (boxes (boxes of apples) of apples)