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Question 1 (3) Consider an economy where rice is the staple food and the rice market is perfectly competitive. Initially the consumers paid the market

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Question 1 (3) Consider an economy where rice is the staple food and the rice market is perfectly competitive. Initially the consumers paid the market equilibrium price for rice. (i) Using a diagram for the rice market, analyse the market equilibrium, the consumer surplus and the producer surplus. Your diagram needs to have a proper shape of the demand and supply curve that correctly reects the demand and supply elasticities. (30 marks)

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