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Suppose good X is initially at equilibrium with price p1 and quantity q1. Now imagine the following events took place: price of good Y (which

Suppose good X is initially at equilibrium with price p1 and quantity q1. Now imagine the following events took place: price of good Y (which is a complement) goes up by 20%, government introduces a tax of 5%, future price of good X is 10% higher (affecting demand

only), and cost of producing X has fallen 10%. USING ONE SINGLE DIAGRAM, analyze how this chain of events will affect the equilibrium

price and quantity.

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