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The current price floor in the agricultural lettuce market makes it such that price of lettuce is 25% higher than equilibrium price and 100
The current price floor in the agricultural lettuce market makes it such that price of lettuce is 25% higher than equilibrium price and 100 heads of lettuce are demanded. Assuming that the elasticity of demand for lettuce is -0.50, what would be the equilibrium quantity of lettuce if the government removed the current price floor?
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Lets start by finding the equilibrium price without the price floor We know that the current price w...
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