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1. In the price-taker model of the three firms, change one parameter of the inverse demand function to represent a 20% increase in the quantity

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1. In the price-taker model of the three firms, change one parameter of the inverse demand function to represent a 20% increase in the quantity demanded at any given price. [Hint: The demand curve should rotate counterclockwise, with the price intercept not moving.] Is the new equilibrium price larger or smaller? Explain

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