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2 - Vietnam is a large rice producer. The market has recently been affected by two events: (i) Urban growth has decreased the amount of

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2 - Vietnam is a large rice producer. The market has recently been affected by two events: (i) Urban growth has decreased the amount of land available for growing rice, and (ii) the State has increased its subsidies to rice producers. Assuming that the world market for rice is perfectly competitive, it is reasonable to predict that in the short run: a) the quantity of rice sold will increase and the price will also increase b) the quantity of rice sold will increase and the price will decrease c) the quantity of rice sold will decrease and the effect on price will be ambiguou d) cannot tell from the information provided

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