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Discussion Post
I. Price of a product increased from $10 to $14. The quantity demanded decreased from 88 to 80 units.
Question A. Calculate the price elasticity of demand.
Question B. Is the product elastic or inelastic?
Question C. What could this product be? Give an example.
II. The next two questions refer to the following curves
Question A. Which of the following demand curves is likely to be the demand of a marijuana drug user and which is likely to be the curve of an opioid user? Why?
Question B. If the government funded schools to have educational campaigns against drug use, show on the curve how the demand for drugs will be affected?
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An increase in the supply of capital decreases the value of the marginal product of capital, reduces the rental rate of capital, and decreases the value.
What impact would this have on the Kitty Litter market and the individual Kitty Litter producer in the SR? In the LR? Carefully Explain.
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