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Analyse changes in market conditions for the cafes

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Reference no: EM132915671

Problem 1: Use the process of comparative statics to analyse the following changes in market conditions for the cafes in the local area (Hint: You are analysing general market condition assuming a competitive market).

a) New housing developments in the local area will increase the number of customers.

b) The number of cafes in the local area decreases by 30 per cent.

 

Reference no: EM132915671

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