The Market for Watches Is Perfectly Competitive and Is Currently

The market for watches is perfectly competitive and is currently in equilibrium.What will happen if watches become more popular among college students?

A) In the short run, firms will experience economic profits, but in the long run, firms will leave the market, lowering economic profits.
B) In the short run, firms will experience economic profits, but in the long run, firms will enter the market, lowering economic profits.
C) In the short run, firms will incur economic losses, but in the long run, firms will leave the market, raising economic profits.
D) In the short run, firms will incur economic losses, but in the long run, firms will enter the market, raising economic profits.
E) In both the short run and the long run, firms will experience zero economic profits.