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Economics

Question: Consider this system of demand and supply for apples. C is the changes in the cost of input for production. For the moment, assume I=0 and C=0.

Demand- Q=6-2P+I

Supply- Q= 2P - C

Suppose I=0 and now C=1

A) Does the demand curve shift left as a result in the new value in C?

B) Does the supply curve shift as a result in the new value in C? Show the curve please.

C) Compute the value of the equilbirum quanity and price given the new value of C.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M93116254

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