The potato market is perfectly competitive. Research is published claiming that eating potatoes leads to gaining weight and so the demand for potatoes permanently decreases. The permanent decrease in demand results in a
A) higher price, economic profits for potato farmers, and entry into the market.
B) lower price, economic profits for potato farmers, and entry into the market.
C) lower price, economic losses by potato farmers, and exit from the market.
D) higher price, economic losses by potato farmers, and exit from the market.
E) lower price, economic losses by potato farmers, and entry into the market.
Correct Answer:
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