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Use the graph to answer the following questions. On the graph: 1. Suppose the price of the good is $20 and individuals 1 and 2

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Use the graph to answer the following questions. On the graph: 1. Suppose the price of the good is $20 and individuals 1 and 2 start off with identical demand curves D1 2. D1 shows the initial individual demands for individuals 1 and 2 when their incomes are $10,000. 3. D2 shows demand for individual 1 when his income increases to $20,000. 4. D3 shows demand for individual 2 when his income decreases to $5,000 Use the endpoint method for all elasticity questions. P $140 $90 $70 $20 D3 D2 D1 10 35 45 70 105 140

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