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Suppose the Market for Grass Seed Can Be Expressed As

question 19

Essay

Suppose the market for grass seed can be expressed as:
Demand: Qᴰ = 100 - 2p
Supply: Qˢ = 3p
At the market equilibrium,calculate the price elasticities of supply and demand.Use these numbers to predict the change in price resulting from a specific tax.


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