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economics exercise explanation Question 3 (50 points) What will happen to the equilibrium price and quantity of butter in each of the following cases? You

economics exercise explanation

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Question 3 (50 points) What will happen to the equilibrium price and quantity of butter in each of the following cases? You should draw the appropriate graph(s) of the change in demand and/or supply in each case taking into account all possible scenarios, if demand and supply change simultaneously. (Graphs may be explained in writing or uploaded on a separate file). (a) A rise in the price of margarine; (b) A rise in the demand for yogurt (Hint: both products have milk as the basic input!); (c) A rise in the price of bread; (d) A rise in the demand for bread; (e) An expected increase in the price of butter in the near future; (f) A tax on butter production; g) The invention of a new, but expensive, process of removing all cholesterol from butter plus the passing of a law stating that butter producers must use this process. A * B

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