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The price of sugar (important in the making of lemonade) increases due to a frost. Explain and show graphically what happens to producer and consumer
The price of sugar (important in the making of lemonade) increases due to a frost. Explain and show graphically what happens to producer and consumer surplus in the market for lemonade. What happens to total revenue of producers of lemonade? Can you conclude anything about elasticity of demand from this result? Explain.
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