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Task 8: Counterfactual analysis: equilibrium price and quantity without subsidies As carefully as you can, superirnpose your reverse engineered demand curve onto the supply curve

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Task 8: Counterfactual analysis: equilibrium price and quantity without subsidies As carefully as you can, superirnpose your reverse engineered demand curve onto the supply curve you constructed in Task 7. What would the equilibrium price and quantity for cotton have been in the absence of US. subsidies? (This is called a counterfactual analysis because it involves the analysis of a situation that is counter to the prevailing situation.)

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