Scenario 14-3 In March of 2000 a Study Sponsored by the Food

Scenario 14-3
In March of 2000 a study sponsored by the Food Consumer Safety Board found that consumption of irradiated grapefruit increased the health of laboratory rats. As a result of national press coverage of the report, the demand for irradiated grapefruit increased dramatically. Organic farmers were able to switch from organic production of grapefruit to irradiated production with no additional cost. Assume that the grapefruit market satisfies all of the attributes of perfect competition.
-Refer to Scenario 14-3.As a result of the increase in the demand for grapefruit,we would predict that in the short run that the

A) production of grapefruit would be at efficient scale.
B) price of grapefruit would rise.
C) total cost for existing irradiated grapefruit producers must rise.
D) number of firms in the market would fall as prices fall and firms exit the market.