Suppose that there is a permanent increase in demand for daisies. Which of the following is the most likely response in this market?

Group of answer choices

Profits will initially increase, but entry of other firms will drive profits back down again in the long run.

Profits will initially increase, and then remain at this higher level permanently.

Profits will initially increase, but exit of other firms will drive profits back down again in the long run.

Profits will initially decrease, as firms struggle to meet the demand, but profits will go back up again in the long run.