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a) Suppose that an increase in the market price of milk from Kshs. 60 to Kshs. 90 per litre raises the amount of milk that
a) Suppose that an increase in the market price of milk from Kshs. 60 to Kshs. 90 per litre raises the amount of milk that dairy farmers in Kinangop produce from 100,000 to 150,000 litres per month. Compute theprice elasticity of supplyof milk in Kinangop.
b) Explain your answer.
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