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In the market for kenkey (NORMAL GOOD), consumers' income has decreased. In that same market, the prices of raw materials used for producing kenkey has
In the market for kenkey (NORMAL GOOD), consumers' income has decreased. In that same market, the prices of raw materials used for producing kenkey has also decreased. Using your knowledge in demand and supply,drawandanalysethe effectof thesesimultaneous occurrenceson the equilibrium price and quantity respectivelyif the magnitude of income decrease is smaller than the decrease in raw material prices.
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