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Agricultural fertilizer is a competitive industry, and has a market equilibrium price at 20 USD/lb. In an effort to make fertilizer more affordable for a

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Agricultural fertilizer is a competitive industry, and has a market equilibrium price at 20 USD/lb. In an effort to make fertilizer more affordable for a large number of famers, the government passes a law that limits the amount that fertilizer producers can charge to 18 USD/day. The result of this policy is: 0 supply of fertilizer decreases, and causes price to fall below 18 USD/day O farmers have a more difcult time finding fertilizer O demand for fertilizer increases, many new fertilizer companies are opened 0 demand for fertilizer increases, causing price to increase above 18 USD/lb

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