Harrison Owns a Flower Shop

Multiple Choice

Harrison owns a flower shop. Generally, when preferences for a good rise, demand for the good rises. Holding all else constant, this will result in a higher market price, which will lead to _____ in the industry. The latter will in turn _____, leading the price to _____.

A) positive economic profits; attract new firms into; fall
B) economic losses; attract new firms into; fall
C) positive economic profits; cause some firms to leave; rise further
D) economic losses; cause some firms to leave; rise further