7. Suppose the market for thick, heavy, hot wool socks is perfectly competitive and in long run equilibrium. Suppose the greenhouse effect kicks in with a vengeance raising average temperatures all over the planet. In the short run you predict:

higher prices and greater output of wool socks.
increased profits for wool sock firms.
lower prices, lower quantities and higher profits for wool sock firms.
lower prices, lower quantities and losses for wool sock firms.
lower prices, lower quantities and zero profits for wool sock firms.