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1. The elasticity of demand for marijuana is -0.5. If the price of marijuana increases by 10%, by how much does quantity demanded decrease? (

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1. The elasticity of demand for marijuana is -0.5. If the price of marijuana increases by 10%, by how much does quantity demanded decrease? ( 5% ) 2. Consider a market with a perfectly elastic demand curve at p* = 1, 763 and a perfectly inelastic supply curve at (1* = 452. What is the Consumer Surplus? What is the Producer Surplus? (15%)

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