if-consumer-preferences-shift-towards-gluten-free-products-how-will-the-wheat-ma

Question

If consumer preferences shift towards gluten-free products, how will the wheat market adjust in the long run?

Accepted Answer

Firms will exit, reducing supply until price equals minimum ATC.

Answer

Prices will remain high due to reduced demand.

Answer

Supply will increase as firms try to maintain profits.

Answer

Firms will enter, increasing supply and lowering prices.