The market for product RK-25 is perfectly competitive. The current market price is $30, and the quantity demanded is 4 million. Due to changes in consumer tastes, a permanent increase in demand for RK-25 is expected in the near term. If nothing else changes in this market, which of the following would be the MOST feasible levels of short-term and long-term prices?
Short -term / Long-term
a. $39 / $35
b. $35 / $39
c. $35 / $30
d. $30 / $35
Answer: c.