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A study of the effects of a dairy price support estimated the price elasticity of supply for milk is 1.2. Suppose that the government is
A study of the effects of a dairy price support estimated the price elasticity of supply for milk is 1.2. Suppose that the government is considering raising the minimum price from $0.70 per gallon to $0.90 per gallon. Based on this information, calculate the percentage change in the quantity supplied of milk. Use the midpoint formula. Show work
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
