A magician can create corn from air. In a given year, he can create enough corn to
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A magician can create corn from air. In a given year, he can create enough corn to increase its supply by 10%. The absolute value of the price elasticity for demand for corn is 0.5, and the price elasticity of supply is 1.5. If the magician sells the corn, how will the price of corn change? What will happen to the quantity demanded of corn? How has the magician helped corn consumers?
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