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Draw a graph for the supply and demand model for pencils (follow the directions listed above).Imagine there is a decrease in the price of the
Draw a graph for the supply and demand model for pencils (follow the directions listed above).Imagine there is a decrease in the price of the wood used to produce the pencils, and at the same time, there is a decrease in the price of pens (which we will assume is a substitute good for pencils). Explain very carefully what would happen in this market. Show on the graph. Show any changes in equilibrium price and quantity.
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