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Demand for generic plain yogurt rises suddenly due to published research about the health benefits of plain yogurt. What will happen in the market for
Demand for generic plain yogurt rises suddenly due to published research about the health benefits of plain yogurt. What will happen in the market for yogurt, assuming it is perfectly competitive?
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price of yogurt will rise, shifting the supply curve of yogurt to the right
price of yogurt will rise, raising profits for sellers and encouraging new sellers to enter the market
economic profits increase for producers in the short-run but return to zero in the long-run
all of the above
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