I believe they would shut down their business, sell the ASICs to people who have access to free electricity and the machines would keep running.
Free electricity? You mean to those who mine with renewables?
I mean for instance people who flare gas from oil production for example (larger scale) and people who pay flat rate for electricity (smaller scale), like in some office buildings.
In general, there are ASIC buyers at almost any Bitcoin exchange rate, but the production is still limited.