Suppose That Sharply Lower Coffee Prices Lead to a Decrease

Multiple Choice

Suppose that sharply lower coffee prices lead to a decrease in the demand for tea. Tea price decreases, and the tea producers experience short-run economic losses. If the tea industry is a price-taker market, after sufficient time is allowed for the market to adjust fully to the decrease in the demand for tea, one would expect the tea industry's output to

A) increase and economic losses to persist.
B) decline and economic losses to persist.
C) decline and economic losses to disappear.
D) increase and economic losses to disappear