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This question asks you to perform a comparative statics analysis in the market for corn. The folg diagram depicts the market for corn. P S
This question asks you to perform a comparative statics analysis in the market for corn. The folg diagram depicts the market for corn. P S X D Q Suppose that the price of fertilizer (an input to the production of corn) rises (a) is demand or supply affected? (1 mark) (b) In which direction does demand or supply shift? Briefly explain (2 marks) (c) How does the equilibrium price and quantity change? (2 marks)
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