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A. (5 points) For what value of g does the backstop cost reach 5 att = 40? B. (10 points) Suppose that g is slightly

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A. (5 points) For what value of g does the backstop cost reach 5 att = 40? B. (10 points) Suppose that g is slightly lower than the value you identified in part (a). How, if at all does this alter the equilibrium price trajectory (the solid curve) in Figure 7.1? Explain your reasoning

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