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Assume the market for coffee is initially in equilibrium.
a) Draw a demand and supply diagram to illustrate the initial equilibrium.
b) Explain the impact on the market if there is simultaneously an increase in the price of coffee beans and a decrease in the price of tea.
c) Graphically illustrate the impact on the diagram you prepared for part (a).
Can you show me the algebra steps to find the slope of MP curve is found by -0.0096L+0.8; MP is maximized at an output level Q=83.33?
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