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3. (Market Equilibrium) A successful advertising campaign by the California Milk Processor Board increases demand for milk. In the short-term, this moves the market demand
3. (Market Equilibrium) A successful advertising campaign by the California Milk Processor Board increases demand for milk. In the short-term, this moves the market demand curve to the right (i.e., increases demand at all price level). The new (short-term) market demand function becomes: Qa(P) = 10062 - 100P The advertising campaign does not affect the (short-term) market supply function which remains: Q,(P) = 3564 + 800P a. (3 points) Calculate the new equilibrium price b. (3 points) Calculate the new equilibrium quantity
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