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A dairy rm in the Free State province faces the following market demand [D{p]] and supply (S{p]) for esh milk. Supposing that the market demand
A dairy rm in the Free State province faces the following market demand [D{p]] and supply (S{p]) for esh milk. Supposing that the market demand for eshmilk is D[p} = 15!] - l].5p and the market supply.r for ash milk is Sm] =51] + 51:. Let p denote the market price for fresh milk. Using the information given, solve for the following: a Inverse market demand. (2) h. Inverse market supply. (2) c. Equilibrium quantity. (2) d. Equilibrium price. (2) Assuming that external forces shi the market demand curve such that the new market demand for esh milk is Blip} = 250 ILSP. e. Compute the new inverse market demand (2) f Compute the revenue maximizing price. [3)
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