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Consider the domestic market for Romaine lettuce. Assume it is currently in equilibrium. A credible news report informs the nation that 90% of the current
Consider the domestic market for Romaine lettuce. Assume it is currently in equilibrium. A credible news report informs the nation that 90% of the current crop is tainted with e. coli. Also, the vast majority of workers who pick the lettuce are going to strike. Using comparative static analysis, what should happen to the equilibrium price and quantity of the lettuce, based solely on this information (ceteris paribus)?
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