Assume the market for orange juice is perfectly competitive. Orange juice producers currently earn a zero economic profit. Orange juice producers will likely begin to incur economic losses in the short run, and some producers will exit the industry until those remaining earn a zero economic profit, if consumers
A. switch from orange juice to grape juice.
B. do not change their demand for orange juice.
C. switch from grape juice to orange juice.
D. All of the above are correct.
Answer: A
Economics
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Indicate whether the statement is true or false
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One piece of evidence that business fluctuations are caused by demand-side changes would be that
A. monetary and fiscal policy will move inversely. B. interest rates and budget deficits will move inversely. C. unemployment and inflation will move inversely. D. unemployment and budget deficits will move inversely.
Economics