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Q. Suppose a hypothetical economy produces two goods i-e wheat and rice.
A. Draw demand curve for wheat.
B. Draw supply curve of wheat.
C. Determine equilibrium in wheat market with help of graphs.
D. If re is an increase in price of rice, illustrate what will be its impact on market equilibrium? Explain how graphically.
E. If government imposes tax on wheat production, illustrate what will be its impact on market equilibrium? Explain how graphically.
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