The Cranberry Market Is Perfectly Competitive

The cranberry market is perfectly competitive.Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries.As time passes,the price of cranberries ________ and the initial firms' economic ________.

A) falls; profit will be eliminated
B) rises still higher; loss will be eliminated
C) rises still higher; profit will not change
D) falls; loss will be increased
E) falls; profit will not change

Correct Answer:

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