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Stoll's Pasty Farms has contracted you to do an economic analysis of the regional market for pasties and you have been operating under the assumption that a pasty is a pasty is a pasty - in other words, one pasty is just as good as any other. Recently completed, your study of the regional market for pasties was carefully done and resulted in the following estimates for the annual demand and supply curves: P = 2 + 10Q and P = 110 - 8Q where Q is expressed in thousands of boxes and price is in dollars per pasty box (if you really want to know, a box contains a Yooper dozen of pasties). Given this information, Stoll's Pasty Farms would like you to answer the following questions:
[NOTE: Show your detailed calculations and illustrate your conclusions using a carefully labelled, equilibrium diagram to show each of parts "a" to "d" of your answer.]
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