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Question
The price of mangos in Country Z changed from $200 per unit to $300 per unit while the supply changed from 120 units to 200 units.
1. Derive the supply function
2. Using the supply function that was derived, estimate the quantity supplied for mangos at a price of $210 per unit.
3. What is likely effect of a drought in the main farming areas in Country Z on equilibrium price and quantity? Illustrate your answer graphically.
Supply side theorists claimed all of the following justifications for their theory, except:
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